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TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 17610
Experience:  International tax
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When completing my SA tax return, which date/dates should be

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When completing my SA tax return, which date/dates should be used in determining when income tax is liable?
• Period when work was undertaken
• Date of invoice
• Date of Remittance advice
• Date of payment
My question specifically relates to work undertaken / payments either side of the year end.
Thank you.
That depends on the accounting method you choose.
You can choose to record your business income and expenses over the tax year in 1 of the following ways:

using cash basis - record money when it actually comes in and goes out of your business (all money counts - cash, card payments, cheque and any other method)
using traditional accounting (accruals basis) - record income and expenses when you invoice your customers or receive a bill

Cash basis is generally used by most small businesses.
Customer: replied 3 years ago.

Thank you for your answer

Just to clarify on a cash basis, if I have provided Consultant Service’s during March 2014 with payment received 22 April 2014, this payment will not be liable for Income Tax until Apr 14/15 self-assessment return.

When you are on cash you report the payments when received. So any payment received on 22 April 2014 would be reported as income on the April 14/15 SA.
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