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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4327
Experience:  FCCA FCMA CGMA ACIS
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should a payment due before 5 April (year 1) not be received

Customer Question

should a payment due before 5 April (year 1) not be received until after 6 April (year 2) be included in the return for year 1 or in the year 2 return ?
Thank you..
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.
I assume that you make your accounts up to 5 April annually. In that case the item would be posted in your ledgers as follows:
Year 1: Debit Debtors; credit Fees received etc.
Year 2: Debit Cash/Bank; credit Debtors.
These will clear the debtors account and leave the fees for inclusion in the Year 1 tax return.
That is the purist's solution. Many would simply put it through the books in Year 2.
I do hope that I have assisted you in your inquiry.
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 2 years ago.
Thank you for your support.