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Where Taxpayers and Advisers Meet

Just missed the tax year

crystalfat
Posts:1
Joined:Fri Apr 14, 2017 11:47 am
Just missed the tax year

Postby crystalfat » Fri Apr 14, 2017 11:50 am

Hi there,
I had some money put aside for a purchase that i wanted to include in this tax year, the purchase would have been offset against my tax bill.
Anyway, the purchase did not go through and is only available now. That's 11 days after my end of year. Is there any way i can purchase the item and still include it in this years tax calculation?

thanks for any advice
best
chris

RMC
Posts:435
Joined:Wed Aug 06, 2008 3:35 pm

Re: Just missed the tax year

Postby RMC » Sat May 06, 2017 11:07 am

I assume that you are self-employed person with accounting year ending on 5 April.

Traders preparing accounts on traditional (accruals) basis would have to include purchases made before 6.4. but not utilised by 5.4. in stock, meaning their profit would not be affected. This is not the case with traders on cash basis, so if you qualify for that and the purchase is substantial, you may wish to change your accounting year-end.

For rules on cash basis read carefully
www.gov.uk/simpler-income-tax-cash-basis/overview


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