Dear All
Due to major inefficiencies, the public sector body my client worked for delayed paying some 2016 dated invoices until after 6 April 2017. When making payment they applied the new rules and the non VAT elements of the payment were subject to PAYE/NI.
The clients year end is 31 March and so it has already paid CT on the invoices involved. It has also now ceased trading and in the year ended 31 March 2018 had no other income and only minimal expenses.
In the accounts , I have reduced turnover by the PAYE/NI deducted (causing it to be negative in view of cessation).
I am aware of the HMRC guidance on how to account for the payment ordinarily, so as not to incur tax twice but I can't seem to find any guidance on where it overlaps a year end and creates a loss.
Does the same logic apply in that it as simple as making the tax adjustment for the net amount, so as to result in the gross amount, and then the loss arising can tbe carried back and offset against last years profits? The result being that the income, now subject to PAYE/NI escapes also being charged to CT?
Anyone foresee any other issues arising?
Very much appreciate any help offered.
