Payment Timing - allocate to 2008 or 2009

[alpine]

If one receives an income related payment in March 2009, but the payment was due circa Oct 2008, then which IT year does the payment fall into?

 

[Domo]

Are you an employee or self-employed?

 

[alpine]

PAYE but also self employed and this would fall under self employed element.

 

[Domo]

If your self-employed accounts are for the calendar year, you will be preparing accounts to show your turnover to include all amounts invoiced in the particular year regardless of when paid.

Therefore you will pay tax on the income in the year that the accounts are assessed.

e.g. if you prepare accounts for the year ended 31 December 2008, and you invoiced for this work in 2008, the taxable profit arsisng from the 2008 accounts is taxable in 2008.

 

[alpine]

Thanks for that Domo. Makes sense, just wanted to make sure.