iPhone Development Tax Return

[MatthewLM]

Hello.

Apple provides financial reports each month (Over different periods) and gives a total in GBP that will be paid for the earnings in that month's period. The earnings for each month are usually then paid later the next month.

How can this relate to a tax return? Can I take the last day of each of these months and then apply the revenues for each month where the last day falls into the basis period? It isn't as if I can take the revenues from each app sold plus advertising revenue for the exact period.

Apple gives March earnings for 27th Feb 2011 to 26th Mar 2011. The April earnings go from the 27th Mar 2011 to 30th Apr 2011. Should I use the March earnings as the last month and the April earnings for the 2011-2012 tax return?

Also for the option:

If you received any foreign income, do you need to complete the foreign section?

I figured I didn't need to check that, after reading the information. I take it I'm right?

Thanks for any help. I understand that the tax returns are hard even for simple soletrader businesses like mine and I'll likely use an accountant in the future.

 

[idletom]

Im currently trying to look into similiar issues as yourself. I found a forum post that has some answers from an accountant, I haven't got enough rep to link to it so search google for the words:


In the following year's accounts the above amounts are taken off the next year's figures as brought forward debtors/creditors

 

[MatthewLM]

Unfortunately that search phrase only brought this thread up.

I will ask on an iPhone development forum to see if any Brits had experienced this before on one of those.

 

[idletom]

Google are fast these days

Sorry try this link replacing the ! with .

www!affiliates4u!com/forums/everything-financial-funding-vat-taxation-startups/166621-tax-point-invoice-date-invoice-payment-date!html

 

[Scalloway]

You could estimate the proportion applicable to the year to 5 April 2011 as being 10/35 of the total received for the 27th Mar 2011 to 30th Apr 201. This would be acceptable to HMRC.

 

[MatthewLM]

Thanks idletom. What you linked to was referring to the accruals concept, where revenues are measured from when the agreement is made but not when the money comes in. My problem is a bit different since the revenues are technically earned when people buy my apps but Apple pools the financial data into months that do not line up with the basis period I need to calculate the tax return for.

@Scalloway Thanks for this information. Is there any documentation relating to it? Estimating the revenues like that would be very easy, of-course, so I'm glad.

 

[Scalloway]

This page refers to rental income but the principal applies to any income where a precise figure is not available but an apportionment can be worked out.

http://www.hmrc.gov.uk/manuals/pimmanual/pim1010.htm

 

[MatthewLM]

Okay, thank you for that, I should be able to finish it all with this information. Glad the method is simple.

 

[jhonydew]

Your question is purely technical and mobile applications may sometime be confusing to viewers. Hence, when you have such problem, why not consult experienced Chartered Accountant for tax returns.