[Erithwc]

What do you all do regarding the end of and beginning of the new tax year bank transations ?

Do you avoid making lots of purchases and cheque desposits or just carry on as normal

Thanks Paul

[steve rix]

Carry on as usual, let the accountantr sort it out, thats what he's paid for

[Helen]

What do you all do regarding the end of and beginning of the new tax year bank transations ?

Do you avoid making lots of purchases and cheque desposits or just carry on as normal

Thanks Paul

Not quite sure what you mean?

If you paid in money at the bank on the 5th and it shows on your statement as on the 5th, then it is classed as 2011/2012 income.
If you did the same on the 6th it would be classed as 2012/2013 income.

Purchases would work exactly the same.....

Of course if you keep your books up to date and know the state of you own financial situation you would then be able to choose when to pay in or pay out?

[Erithwc]

I was talking more about cheques as i have only been accepting them for around 4 months do you just pay them in as normal or wait until the new tax year to pay in because if i payed the cheques in today the wouldn't show up as clear funds 

thanks Paul

[Paul Coleman]

I was talking more about cheques as i have only been accepting them for around 4 months do you just pay them in as normal or wait until the new tax year to pay in because if i payed the cheques in today the wouldn't show up as clear funds 

thanks Paul

Surely your tax bill is based on work done rather than work you've been paid for? (I think you get a choice with VAT though).
As for purchases, if I'm getting near the end of my accounting year and there's something I will need within a few weeks, I will buy it - but only if I have the funds.  That way the tax relief is gained a year earlier.  However, this is more about larger items and they may end up being regarded as capital items anyway where you may not be able to claim the full value in year one.

[Smudger]

Paul - think it's the other way round - work done but not paid for is not income (yet) same as purchases you have not
paid for is not expence

VAT is paid on the turnover figures


but could be wrong...

Darran

[Rogue Trader]

turnover= all monies money recieved and turnover minus expenses is profit which is taxable. VAT can be calculated by invoices writted or income recieved (cash accounting) and this is the way i do it as i dont see the point of paying taxes on money not yet recieved, though some do.

[Paul Coleman]

Paul - think it's the other way round - work done but not paid for is not income (yet) same as purchases you have not
paid for is not expence

VAT is paid on the turnover figures


but could be wrong...

Darran

Although I'm not VATable, I know you get the choice with VAT because I know a guy who went VAT registered a couple of years back.  I've not heard of that choice with turnover though.  I think it would only help in the first year because after that, it would be swings and roundabouts at either end of the year.

[Paul Coleman]

turnover= all monies money recieved and turnover minus expenses is profit which is taxable. VAT can be calculated by invoices writted or income recieved (cash accounting) and this is the way i do it as i dont see the point of paying taxes on money not yet recieved, though some do.

Hi.  Rogue Trader was the one I referred to in my post - though he has decided to put on a Clouseauesque disguise 

[Rogue Trader]

i have indeed mr coleman though this particular disguise has been in force for a little while

[rah]

Only purchase what you need to at the beginning and then when you have a couple of quid, spend it at the end of the tax year, Gardiners, pure freedom & WCW have all dropped little parcels today!

Get my tax relief on this/last years accounts.

Rob.

[Helen]

I was talking more about cheques as i have only been accepting them for around 4 months do you just pay them in as normal or wait until the new tax year to pay in because if i payed the cheques in today the wouldn't show up as clear funds 

thanks Paul

Until they bounce they are classed as income
You are taxed on monies that have been paid to you and purchases that you have made

Vat is another issue and you do have choices.

[Erithwc]

spoke to my accountant yesterday and he has anwsered my question.

Thanks for the replys

Paul