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Where Taxpayers and Advisers Meet

CT tax and returns

robbob
Posts:3228
Joined:Wed Aug 06, 2008 4:01 pm
Re: CT tax and returns

Postby robbob » Tue Jul 16, 2019 6:28 pm

My Turnover for last year was X amount, and I invoiced for 4900 to an client during my last year. But the client paid 2 months after year end date of 30/11/18.
Now when I am going to submit my returns next month, will my turnover be X + 4900 ? or when this current year which is going to end on 30/11/19 will include this 4900.
Ok now my head hurts

with reference to ye 30/11/2018 lets say you did £49,900 worth of work that year - lets say that was 45k that you were paid for in year and the £4,900 that you didnt get paid for in year.

lets say you do £35,000 of work year end 30/11/2019 - all paid in year (woop no problems this time next year) - and you also receive payment for the £4,900 in this year that you didnt get ye 30/11/2018.

Your turnover ye 30/11/2018 is £49,900 as that is the value of the work you did - the fact you got paid more or less (less) is not relevant.
Your turnover ye 30/11/2019 is £35,000 as that is the value of the work you did - the fact you received more is not relevant.

In summary the 4900 is included on the ye 30/11/2008 return and you need to make sure you don't then include it again on ye 30/11/2019 return!

final note for clarity - turnover = value of work done not sales received ! = 49,900 for ye 30/11/18 per my example above.

Hopefully that answers the question - if not i may need to get my horlicks down from the top shelf.

humble_pie
Posts:22
Joined:Sun Dec 03, 2017 9:44 am

Re: CT tax and returns

Postby humble_pie » Tue Jul 16, 2019 6:36 pm

My Turnover for last year was X amount, and I invoiced for 4900 to an client during my last year. But the client paid 2 months after year end date of 30/11/18.
Now when I am going to submit my returns next month, will my turnover be X + 4900 ? or when this current year which is going to end on 30/11/19 will include this 4900.
Ok now my head hurts

with reference to ye 30/11/2018 lets say you did £49,900 worth of work that year - lets say that was 45k that you were paid for in year and the £4,900 that you didnt get paid for in year.

lets say you do £35,000 of work year end 30/11/2019 - all paid in year (woop no problems this time next year) - and you also receive payment for the £4,900 in this year that you didnt get ye 30/11/2018.

Your turnover ye 30/11/2018 is £49,900 as that is the value of the work you did - the fact you got paid more or less (less) is not relevant.
Your turnover ye 30/11/2019 is £35,000 as that is the value of the work you did - the fact you received more is not relevant.

In summary the 4900 is included on the ye 30/11/2008 return and you need to make sure you don't then include it again on ye 30/11/2019 return!

final note for clarity - turnover = value of work done not sales received ! = 49,900 for ye 30/11/18 per my example above.

Hopefully that answers the question - if not i may need to get my horlicks down from the top shelf.


That is all clear and well understood. I owe you a drink. Thank you very much again.

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: CT tax and returns

Postby pawncob » Tue Jul 16, 2019 7:35 pm

Your turnover will be all invoices issued in the year, and that includes the £4900.
With a pinch of salt take what I say, but don't exceed your RDA

Sam111
Posts:2
Joined:Tue Sep 17, 2019 8:23 pm

Re: CT tax and returns

Postby Sam111 » Tue Sep 17, 2019 8:47 pm

The income is recorded according to when the invoice is raised. All that happens when the debtor pays is that goes from a debtor on your balance sheet to cash on your balance sheet. No effect at all on your P&L and hence none on taxes.


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