Self Assessment Tax Return - clarification needed on income and expenses

[neeta]

Can I clarify the following regarding my Self Assessment Tax Return:

1) I did some IT work back in Nov 08 and invoiced the client in Nov 08 , but wasn't paid until May 09- so do I put this income in my 08-09 return or not. If I do put this in then can someone explain why? when the money wasn't rec'd until May 09.

Also is it the same for all expenses including rental property expenses- do they go in the period to which they relate or when you paid them? Because again I had some work done on a property I rent out in December 08, but I didn't pay for it until May this year.

I'm confused as to why income or expenses that I didn't get or pay until much later should go in the 08-09 return when interest from my bank account on savings only go in the tax year in which you actually receive it?

Thank you for your help

[RAL]

IT invoice 2008-2009 invoice accrual/receivable basis. (Not cash received basis)

Rental income and expenditure should be on accrual/receivable basis.

Interest on receipt basis.

Well you have to go through, HMRC and accounting standards pages to get the detail answer.

[elainec100@cheapaccounting]

See all of these are rules you learn as part of your accounting training or by reading all the the notes to the self assessment forms.

[RAL]

See all of these are rules you learn as part of your accounting training or by reading all the the notes to the self assessment forms.

Or go to HMRC course as suggested by Elaine in answer to your query in Nov-08 (I think).

Or PM me if it is simple I would be happy to answer.

[elainec100@cheapaccounting]

good lord - how did you know that. I don't remember that but I can't remember what I did yesterday!

[RAL]

good lord - how did you know that. I don't remember that but I can't remember what I did yesterday!

Thanks goodness. I am not alone thinking I got short memory:p:D:rolleyes:

This was the post (http://www.ukbusinessforums.co.uk/forums/showthread.php?t=86657).