Money received in 2023 but for 2022

[joe sod]

If I am due a payment in 2022 but I do not receive it until 2023 can I still enter this for my tax return as revenue received in 2022

 

[ClubMan]

Employee?
Business?

 

[joe sod]

It's a small business basically , I am employee aswell though

 

[Itchy]

If I am due a payment in 2022 but I do not receive it until 2023 can I still enter this for my tax return as revenue received in 2022

In the case of PAYE, salary arrears and bonus payments for a previous tax year, are taxed in the current tax year.

 

[Brendan Burgess]

Your annual accounts must be prepared on an accruals basis. If you earn income in 2022, you must show that in your accounts for 2022.

Likewise if you incur expenses in December on credit and don't pay for them until January, you can deduct them as an expense for 2022.

The only exception I can think of is rent received. Revenue allow the taxation of rent on a receipts basis, by concession.

Brendan

 

[joe sod]

The only exception I can think of is rent received. Revenue allow the taxation of rent on a receipts basis, by concession.

So you are saying rent or a late lease payment can only be entered in the tax year it was received even if it was due the previous tax year?
Also if the cheque was lodged for example on the 30 December 2022 but does not clear until say the 3 January 2023, what tax year is the payment received ?
Thanks

 

[T McGibney]

So you are saying rent or a late lease payment can only be entered in the tax year it was received even if it was due the previous tax year?

I don't think Brendan is saying that. Regardless, it's not the case.

 

[Brendan Burgess]

Joe

You would need your accountant's tax advice on this.

If a landlord receives the rent for 2022 in 2023 I understand that he can declare it for 2023. But I assume he can declare it for 2022 instead.

But my knowledge is theoretical. Your accountant will have faced this issue often.

Brendan

 

[JanetRichardson]

If I am due a payment in 2022 but I do not receive it until 2023 can I still enter this for my tax return as revenue received in 2022

Salary arrears and bonus payments from a prior tax year are taxed in the current tax year when using PAYE.

 

[ArthurMcB]

I would have thought rent due in 2022 received in 2023 would be:

2022:
Cr rental income in p&l
Dr rent debtor in your current assets in bal sheet

2023:
Dr bank with rent received in current asset in bal sheet
Cr rent debtor in current asset in bal sheet

Maybe an accountant could correct me. @T McGibney ?

 

[T McGibney]

I would have thought rent due in 2022 received in 2023 would be:

2022:
Cr rental income in p&l
Dr rent debtor in your current assets in bal sheet

2023:
Dr bank with rent received in current asset in bal sheet
Cr rent debtor in current asset in bal sheet

Maybe an accountant could correct me. @T McGibney ?

Correct Arthur.

 

[joe sod]

I would have thought rent due in 2022 received in 2023 would be:

2022:
Cr rental income in p&l
Dr rent debtor in your current assets in bal sheet

2023:
Dr bank with rent received in current asset in bal sheet
Cr rent debtor in current asset in bal sheet

Maybe an accountant could correct me. @T McGibney ?

in the case where getting rent for land lease and the rent is not received until january 2024 but the rental period is for 2023, presumably the rent can be entered as rent received in 2023 form 11 return?

 

[jpd]

As usual, the revenue guidelines are confused on this issue
On one hand https://www.revenue.ie/en/self-assessment-and-self-employment/documents/guide-pay-file.pdf

From Page 25 Rental Income from Land and Property in Ireland [201 - 216]This includes income receivable from rents

and on the other hand

https://www.revenue.ie/en/self-assessment-and-self-employment/documents/form11-helpsheet.pdf

From Page 2 - C - Irish Rental Income [201 - 216]Information on rents received

So it's as clear as mud