Claiming an item as an expense, then selling or returning that item

[antlondon379]

Hello,

Let's say it's March 30th and my accountant is doing my accounts for the year. I buy an item for £1000, but a month or so later find that I don't need it or it's faulty or whatever.

I return this item and get my money back. What happens to my accounts for the previous tax year that claimed that £1000 as an expense? Do I have to declare straight away that I received a refund for the item or do I wait until the next set of accounts are due?

I am self-employed if that makes any difference.

Thank you for your help.

[bd6759]

In most scenarios the refund will be treated as income or as a negative expense in the next period.