If I return the payment this FY, are HMRC likely to insist that it was income?
This is another one for the tax returns thread, but if you receive the overpayment and then reimburse it in the same accounting period, the income is offset by the expenditure and netts to zero. If the transactions span the end of your accounting period, which year you allocate the transactions to depends on whether your tax return is compiled on a accrual or cash basis.
This is another one for the tax returns thread, but if you receive the overpayment and then reimburse it in the same accounting period, the income is offset by the expenditure and netts to zero. If the transactions span the end of your accounting period, which year you allocate the transactions to depends on whether your tax return is compiled on a accrual or cash basis.