Which tax year??

(Obviously I'm new to self-employment!)
If I bill a company for work done in March 2010, and receive payment (say) on April 10th, does that count as income for the 2009/10 or
2010/11 tax year?
--
Reentrant

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bill/invoice date.
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It depends on (a) what your accounting year-end date is, and (b) how long you've been trading.
The answer could be 09/10, or 10/11 or both !!!
However, KT is right in saying that it's the invoice date, not payment date, which matters.
HTH
--
Martin


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"Martin" wrote

Hehe - so if there is no invoice, you never have to pay the tax??!
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of course, cos you never get paid...
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"Ken Tukyfriedturkey" wrote

Don't be silly - an invoice isn't always required (assuming not registered for VAT), and you can still receive payment.
So - if the supplier of goods/services is paid without producing an invoice, do you really think that they can get away without paying tax?
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I was talking legit business, not fly by night tinker tarmacers or scrap yard dealers...
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"Ken Tukyfriedturkey" wrote

So was I. If the business wasn't legit, it probably wouldn't want to know when it should pay its tax!!
"Ken Tukyfriedturkey" wrote

I'm sure they're not the only businesses that don't always need to produce invoices...
Would you care to answer the question now? - When do you think that a legit business, that doesn't always produce invoices, should pay its tax?
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????? op says 'if I bill a company'
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"Ken Tukyfriedturkey" wrote

Yes, correct. Now - are you going to answer *my* question? - It's different to the OP's question...
So far, your answers suggest that a legit business which is paid without producing an invoice, doesn't have to pay tax!! Are you sure...?
And if they *do* have to pay tax (presumably likely!), then *when* do they pay tax on payments in respect of work done in March 2010, if payment is received (say) on April 10th?
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Yes Timmy, we can see you're a smarty pants...
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"Ken Tukyfriedturkey" wrote

So Kenny, does that mean you don't know to which tax year the income belongs? Or if you do know, then why won't you say?
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Timmy, I answered the Q that was asked by the op.
I have no intention of committing an answer to yours, whether I know it or not
You are obviously a little tiger in the world of business :-)
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"Ken Tukyfriedturkey" wrote

Ah, but is your answer reliable for their case? (See below...)
"Ken Tukyfriedturkey" wrote

Well Kenny, that's a shame because it casts some doubt on your other answer to the OP. You see, if the date of producing an invoice is effective in "fixing" the tax year which is relevant, then a business which doesn't usually produce invoices could delay paying their tax simply by producing an invoice a couple of years later (eg, just when HMRC first writes to them...).
"Ken Tukyfriedturkey" wrote

Why do you say that?
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For VAT it also depends on whether you are doing 'cash accounting' or not, if you are cash accounting then it's the payment date that counts from the VAT point of view.
--
Chris Green


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On 26/03/2010 13:50, Ken Tukyfriedturkey wrote:

I thought it had to be when the work was done, not when it was invoiced for.
Rob Graham
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