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johnnyivan

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Hi All,
Can anyone give me the definitive answer on this?

When I enter my sole trader income for 2010, is that based on any invoices dated in 2010 - or on payments actually received in 2010 - or even when the money actually cleared in the account, in 2010?

I'm getting coflicting opinions so I asked Revenue:

"It's based on when you received the money" he said.
"Are you sure"
I asked?
"I'll just go and check."
he replied.
-----------------------------
He returned, "It's based on the period in which you worked for that money."
"Are you sure?"
I asked again.
"Yes, it's on the revenue website in the guide for the self-employed."
he assured me.
"I haven't seen it - can you tell me exactly where it is?"
"No I can't, sorry."
he said.
__________________

Thanks,
John
 
Your turnover will be Invoices issued in 2010 plus any work done but not yet invoiced.
If it takes two years of chasing a customer to receive the money, it's still taxed as 2010 income.
 
Hi Gervan,
Thanks! An accountant has just told my wife that "it's a grey area. Pick a method and stick to it." Like you she recommends going by invoice dates. Then you appeal to Revenue in the next year if invoices weren't ever paid.
 
I've been told that a small - under €1,000,000 p/a turnover - business can opt for 'cash-based' accounting on the tax return.

Sounds good to me.
John
 
I've been told that a small - under €1,000,000 p/a turnover - business can opt for 'cash-based' accounting on the tax return.

Sounds good to me.
John


Unfortunately this applies only to [broken link removed]. Take extreme care in relation to this sort of thing and consider getting proper professional advice if the numbers involved are in any way significant.
 
Ah I see. I suppose Revenue are happy enough because the VAT allows them to trace the money flow. I'm below VAT-eligibilty at present.
 
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