Invoices pre- or post- April: which tax year?

What's your Year End?

Normally the year in which you invoice him, unless you invoice in advance for services to be provided at a later date.

Same as the tax year.

I think I see what you're getting at; consequently can I add a 'part 2' to my question?

If a supplier invoices me today and I don't pay his invoice until 7 April, in which tax year do I record this payment as a business expense? (Obviously I have no idea when the supplier's year end is - does that make any difference?

David

Assuming you're using a standard accruals basis of accounting, and assuming that you mean the supplier has dated his Invoice today, then you should treat the invoice as an expense in your 2004/2005 year.

Rgds

__ Richard Buttrey Grappenhall, Cheshire, UK __________________________

"Richard Buttrey" wrote in message news: snipped-for-privacy@4ax.com...

Normally, Cash Basis accounting is not acceptable to the IR. So it's the date of the invoice which is important, not the date of payment. This is reversed if Cash Basis is being used.

In message , Lobster writes

It is treated as income on the date of the invoice

Completely OT, but what about dividends from shares etc.?. I've always used the payment date, but I've never been 100% certain that this is correct.

Normally, the date of payment on the dividend.

ISTR many years ago that Barrister's practices used cash based accounting - presumably because of the protracted nature of legal cases and the relatively slow cash flow.

Is this still the case, and acceptable to the IR?

Rgds

__ Richard Buttrey Grappenhall, Cheshire, UK __________________________

"Richard Buttrey" wrote in message news: snipped-for-privacy@4ax.com...

IIRC, Cash basis is no longer acceptable for Barristers - except for the early years (up to 7).

Even more intriguingly, how about those who send out draft (pro forma), non-VAT invoices. When they are paid, the VAT invoice follows.

Rather cute, I think; whether legal or not I cannot say. But more likely to be legal than the sort of offshore billing that used to go on.

This is fairly standard practice in the Construction Industry, and definitely not illegal. Contractual terms often allow for the use of a document referred to as an 'Authenticated Receipt'.(AR) i.e. a document either issued by the client along with his payment to the Contractor, which the contractor signs, and by doing so creates a tax point, or more often the contractor issues his own AR on receipt of cash.

The important point is that the original, (usually letter of ) application to the client should contain no mention of a VAT number or be construed in any other way as a VAT invoice.

Rgds,

__ Richard Buttrey Grappenhall, Cheshire, UK __________________________