Does refunded double payment count to turnover?
Posted: 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.
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.