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Where Taxpayers and Advisers Meet

Erratic payments, retained consultancy

Joined:Sun Mar 26, 2017 7:20 pm
Erratic payments, retained consultancy

Postby Oldtramp » Thu May 02, 2024 6:15 pm

A company retains me as a consultant at £1000 pcm. Their finances are eccentric. They miss the Feb and March 2024 payments, then pay for April, sending a note of apology saying that 'Missing payments will follow when they can manage'. On past form I think the odds of this are 50:50, though I anticipate that future payments will come in normally for several months.

Given that they are good people and don't really demand much of me I prefer not to press the issue with them. But, how should I book the £1000 recently received -- as missing payment for Feb 2024 (i.e. fiscal 23/24) or as actual for April 2024 (i.e. fiscal 24/25)? I work on an April to March tax year account.

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

Re: Erratic payments, retained consultancy

Postby pawncob » Thu May 02, 2024 7:49 pm

Do you issue invoices? If so, it's the invoice date which determines the accounting date.
I'd include the due payments as a debtor.
With a pinch of salt take what I say, but don't exceed your RDA

Joined:Sat Feb 01, 2014 3:26 pm

Re: Erratic payments, retained consultancy

Postby bd6759 » Sat May 04, 2024 5:47 pm

Unless you are using the cash basis, then it is simply when it is received.

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