Tax Returns

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hugo7

Struggling to find a quick answer so thought I'd ask here.

If I perform services and invoice in Mar '20, but receive the payment in Apr '20 does it fall in 19/20 or 20/21 tax year?

Cheers.

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NotThamesWater in reply to @hugo7

Self-employed or Ltd?

Self-employed tends to be cash based - i.e. when you receive it.

Ltd tends to be UK GAAP, where the liability (for deferred revenue) is recognised at the point the service is performed.

(IANAA)

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hugo7 in reply to @NotThamesWater

Thanks that answers it.

It's partially to work out ltd. vs self-employed - main motivation is limited liability, but just trying to work out if the meagre tax advantage is enough to eat accountant costs and life admin.

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