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HM Accountax Ltd
HM Accountax Ltd, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 325
Experience:  I am an accountancy professional with more than10 years hand on experience in audit, accountancy and tax affairs.
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We received some income for a future event, which then never

Customer Question

Hello!
We received some income for a future event, which then never happened. We offered to refund anyone but many didn't want to be so we have retained the funds (circa £1k).
How do I treat this in the accounts. Is it just considered other income or is it classified as a donation? Also are there any different tax treatments if it is the latter?
Thanks
Submitted: 10 days ago.
Category: Tax
Expert:  HM Accountax Ltd replied 10 days ago.

HI,

I am an advisor at JA and happy to assist you.

You can include this as other income in your accounts.

I hope this answers the query.

Regards

HMAT