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Where Taxpayers and Advisers Meet

Personal Tax - Invoice date vs payment date

rambutan
Posts:1
Joined:Sun Jan 12, 2025 11:57 am
Personal Tax - Invoice date vs payment date

Postby rambutan » Sun Jan 12, 2025 1:32 pm

Can someone please help me with working out my self-assessment taxes for the financial year ending April 2024.
I am a director of a Ltd company and in addition I so some work as a self-employed courier. I drew a salary of £12,570 from the Ltd company for that period and this was submitted to HMRC last year (so no further action is due in this regard). I however need some help working out taxable earnings as a courier which I started in July 2023.

The courier company I provide services for generates our invoice about 2 weeks ahead of the payment date.

1. So, when calculating the tax due, should I base it on the invoice date or the actual payment date? I have an invoice that was dated the 29th of March 2023 (Before the end of the personal tax year) but the payment to my bank account was received on the 15th of April 2024 (after the tax year). Should I include or exclude those figures from the tax calculations?

2. I used my personal tax allowance when paying my self the salary of £12,570 from the Ltd. Can I still use the traders allowance of £1000 as well? So If I made £9.000 as a courier, can I deduct £1000 from the calculations to work out the tax due?

I will be claiming mileage expenses as well, as I used my own car.

Thanks in advance.


Thanks

pawncob
Posts:5176
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Personal Tax - Invoice date vs payment date

Postby pawncob » Sun Jan 12, 2025 8:10 pm

https://www.protaxaccountant.co.uk/post/cash-accounting-scheme
With a pinch of salt take what I say, but don't exceed your RDA

D&C
Posts:186
Joined:Mon Nov 25, 2019 11:35 pm

Re: Personal Tax - Invoice date vs payment date

Postby D&C » Sun Jan 12, 2025 10:31 pm

I drew a salary of £12,570 from the Ltd company for that period and this was submitted to HMRC last year (so no further action is due in this regard)
You still need to declare that income on your Self Assessment return.

Can I still use the traders allowance of £1000 as well? So If I made £9.000 as a courier, can I deduct £1000 from the calculations to work out the tax due?

I will be claiming mileage expenses as well, as I used my own car.
If you intend to claim actual expenses then why do you think you can also claim the Trading Allowance 😳


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