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ronnie paton

  • Posts: 3245
what do you declare??
« on: September 11, 2008, 09:57:46 pm »
after playing on window cleaner pro i notice when you go to accounts it incluses all outstanding debts has sales is this correct??? i thought you only declare what you have been paid(if you understand?)

L.J.Thorpe

  • Posts: 2056
Re: what do you declare??
« Reply #1 on: September 11, 2008, 10:00:15 pm »
you have to declare any money owed on your tax return
as part of gross i think

ronnie paton

  • Posts: 3245
Re: what do you declare??
« Reply #2 on: September 11, 2008, 10:39:31 pm »
really?? myaccountant never asks for this, so why do you pay tax on it has you may never get paid???

dave0123

  • Posts: 3553
Re: what do you declare??
« Reply #3 on: September 11, 2008, 10:44:02 pm »
You put down all money earnd. then expenses come off inclduings bad debts.
Dave.


dave0123

  • Posts: 3553
Re: what do you declare??
« Reply #5 on: September 11, 2008, 10:45:32 pm »
Thats how i thought it was .. but no aparently thats the way its done
Dave.

ronnie paton

  • Posts: 3245
Re: what do you declare??
« Reply #6 on: September 11, 2008, 10:50:38 pm »
oops well iv only ever declared what iv been payed, iv never had payments not recieved so if say i do a commercial on the 4 of april i leave it till i get paid in the new tax year.

if i do has i should this year i would be paying some of last years tax then wont i??

NWH

  • Posts: 16952
Re: what do you declare??
« Reply #7 on: September 11, 2008, 10:51:08 pm »
You have to declare money outstanding for that TAX period so they can calculate your bill in full.

ronnie paton

  • Posts: 3245
Re: what do you declare??
« Reply #8 on: September 11, 2008, 11:00:01 pm »
but if its money outstanding near the end of the tax year and you dont get paid you will have paid tax on this.

L.J.Thorpe

  • Posts: 2056
Re: what do you declare??
« Reply #9 on: September 11, 2008, 11:06:53 pm »
yes but you dont declare it next year do you ???
geddit :)

pdale

  • Posts: 283
Re: what do you declare??
« Reply #10 on: September 11, 2008, 11:08:36 pm »
If you send an invoice you should put a date on it, or "tax point". You may notice tax points on invoices for expenses.

The invoices of these "tax points" that fall within the tax year are what should be declared, paid or not.

Of course if a debtor fails to pay his invoice then this would go down as a bad debt, which is deductable.

Paul
Where am I knocking today?

ronnie paton

  • Posts: 3245
Re: what do you declare??
« Reply #11 on: September 11, 2008, 11:15:09 pm »
ye i understand i just wish the accountant would of informed me so now i will be paying tax on a few payments that came in at the beggining of the year(from the end of the last tax year) and also on payments not recieved aqt the end of this tax year. :(

ianhannaford

  • Posts: 663
Re: what do you declare??
« Reply #12 on: September 11, 2008, 11:19:37 pm »
Ronnie,

Last year the the Inland Rev bought out a new scheme called Cash Accounting.

Previously you had to declare all money you charged for, even if you did not collect any money. This was called Invoice Accounting.

When they introduced Cash Accounting this means you can declare on the actual money you have collected in your business rather than on the money you have charged. In Window Cleaner Pro you can see both values and choose which scheme you prefer. This is what Collected/Charged drop down box on Accounts are.

Hoep this makes sense


Ian

L.J.Thorpe

  • Posts: 2056
Re: what do you declare??
« Reply #13 on: September 11, 2008, 11:20:32 pm »
if you have done it the way you said then you will have declared on those at beginning of year
then just declare on the ones you did not get on this years :)
as long asyou declare it al no worries in the end
the post by pdale sums it all up perfect tho

ianhannaford

  • Posts: 663
Re: what do you declare??
« Reply #14 on: September 11, 2008, 11:22:42 pm »
If you send an invoice you should put a date on it, or "tax point". You may notice tax points on invoices for expenses.

The invoices of these "tax points" that fall within the tax year are what should be declared, paid or not.

Of course if a debtor fails to pay his invoice then this would go down as a bad debt, which is deductable.

Paul

This was correct previously but if you choose to employt the new Cash Accounting scheme then you only declare once you have received the money, not invoiced for it.

Ian

ronnie paton

  • Posts: 3245

Moderator David@stives

  • Posts: 8829
Re: what do you declare??
« Reply #16 on: September 11, 2008, 11:41:11 pm »
It doesnt matter to the tax man as long as you are consistant.

You can either use the Turnover or the cash recieved figure.

Once you start you have to stick to it.

I use the turnover figure regardless if I have been paid or not.

L.J.Thorpe

  • Posts: 2056
Re: what do you declare??
« Reply #17 on: September 11, 2008, 11:44:15 pm »
It doesnt matter to the tax man as long as you are consistant.

You can either use the Turnover or the cash recieved figure.

Once you start you have to stick to it.

I use the turnover figure regardless if I have been paid or not.
same here but i do cash recieved

ianhannaford

  • Posts: 663
Re: what do you declare??
« Reply #18 on: September 12, 2008, 12:11:02 am »
It doesnt matter to the tax man as long as you are consistant.

You can either use the Turnover or the cash recieved figure.

Once you start you have to stick to it.

I use the turnover figure regardless if I have been paid or not.
same here but i do cash recieved

Yep this is correct, you can choose whether you do Cash Accounting (money actually received) OR Invoice Accounting (money you have charged but may not have received)

Ian