UK tax return - question on calculating income Thread poster: Maria Simmen
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Maria Simmen
Germany
Local time: 17:45
English to German
+ ...
Hello,
I started my tax return for the previous year and already ran into a problem: the field called "Turnover - takings, fees, sales or money earned by your business".
It sounds simple enough but I'm wondering if I have to look at amounts I invoiced during the tax year or the money that actually went into my account. In the HMRC help pages it says "It is the money due to you up to your end of year – whether or not you have actually been paid." This seems to call fo... See more Hello,
I started my tax return for the previous year and already ran into a problem: the field called "Turnover - takings, fees, sales or money earned by your business".
It sounds simple enough but I'm wondering if I have to look at amounts I invoiced during the tax year or the money that actually went into my account. In the HMRC help pages it says "It is the money due to you up to your end of year – whether or not you have actually been paid." This seems to call for the amounts invoiced BUT - and this is why I'm confused - I used to have a tax adviser and distinctly remember him telling me that it's the statements that matter, i. e. the money that I have actually earned.
Did legislation change or maybe there are different rules for different kinds of bussineses?
Any input is much appreciated! ▲ Collapse
| | | | XXXphxxx (X) 
United Kingdom
Local time: 16:45
Portuguese to English
+ ...
If this the first year you are filling in a self-assessment tax return in the UK or there are fields which you think have changed from last year and you are not sure what you are doing then perhaps it's worth considering an accountant who, for a relatively modest (and tax-deductible) fee, will make the task simpler for you and allow you to get on with translating
| | | | Manuela Junghans
Germany
Local time: 17:45
Member (2004)
English to German
+ ...
I understand this as the amount invoiced between 06 April (of a given year) to 05 April (of the next year), i.e. in one UK tax year, regardless of whether you´ve received it all by the deadline or not. That´s my take on it anyway...
Best Regards,
Manuela
| | | | Clive Phillips
United Kingdom
Local time: 16:45
Member (2009)
German to English
+ ...
| Money due by end of tax year | May 1, 2013 |
Hi Maria
According to the HMRC's SA103f page SEFN6, 'turnover - takings, fees, sales or money earned by your business' is
"...the money due to you up to your year-end or accounting date, whether
or not you have actually been paid."
http://www.hmrc.gov.uk/worksheets/sa103f-notes.pdf
Happy accounting!
Clive
[Edited at... See more Hi Maria
According to the HMRC's SA103f page SEFN6, 'turnover - takings, fees, sales or money earned by your business' is
"...the money due to you up to your year-end or accounting date, whether
or not you have actually been paid."
http://www.hmrc.gov.uk/worksheets/sa103f-notes.pdf
Happy accounting!
Clive
[Edited at 2013-05-01 09:47 GMT] ▲ Collapse
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Maria Simmen
Germany
Local time: 17:45
English to German
+ ...
TOPIC STARTER
Thank you all very much for the quick replies and confirming my reading of the explanations!
Lisa - it's not the first year I'm filing a tax return but it's the first year I'm intent on managing on my own. Plenty of time to get the pros in in case things go wrong
| | | | | Things have indeed changed | May 1, 2013 |
Maria Bruessler wrote:
Did legislation change
Not legislation as such, but yes. A few years ago, you could chose whether to use cash accounting or accrual accounting. These days, HMRC more or less insist on accrual. Hard to enforce, obviously, other than through inspection, but as you have noticed, their guidance is now all directed towards accrual accounting methods (except in the case of VAT returns).
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