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Where Taxpayers and Advisers Meet

Does refunded double payment count to turnover?

Oldtramp
Posts: 11
Joined: Sun Mar 26, 2017 7:20 pm

Does refunded double payment count to turnover?

Postby Oldtramp » Tue Jun 26, 2018 11:57 am

A client paid the same invoice - for about £1000 - twice over. Being an honest soul, I refunded the second payment.

How do I handle this when preparing accounts? Do I:

Ignore it ---- it was an error that was corrected at nil cost?
Show on the accounts as a credit and an equal expense?

It's material because my self employed income (as a sole trader, in context) in relatively close to the VAT registration limit and the latter approach uselessly adds the £1000 to turnover...... meaning that I'd prefer not to do it unless the law says that I must.

pawncob
Posts: 4192
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: Does refunded double payment count to turnover?

Postby pawncob » Wed Jun 27, 2018 4:30 pm

Just contra it against sales.
With a pinch of salt take what I say, but don't exceed your RDA


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