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Where Taxpayers and Advisers Meet

Deposit on China Shipment

Posts: 48
Joined: Wed Aug 06, 2008 3:59 pm

Deposit on China Shipment

Postby tomdhu » Fri Apr 13, 2018 10:30 pm

Under HMRC accrual accounting rules, how should I treat an order for goods from China where the 30% deposit was paid in Jan 2018 and where the 70% balance will be paid May 2018 ie payment is actually split over 2 different tax years.

Legally, I gain possession of the goods when I make payment against the Original Bill of Lading in May but I will not physically take possession until mid June.

Someone said I should book them in 2017/8 as that was when I paid the deposit and someone else said it's when I pay the full amount.

What should I do?

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