late invoice

Discussion in 'Accounts & Finance' started by zinnia48, Mar 7, 2018.

  1. zinnia48

    zinnia48 UKBF Contributor Free Member

    88 0
    i have just received an unpaid invoice from january 2017 for nearly £500, can I include it in my sole trader self assessment for 2017/2018. Just to make life a bit more difficult i ceased to be a trader in june 2017 , when i took employment. Many thanks
    Posted: Mar 7, 2018 By: zinnia48 Member since: Jul 22, 2013
  2. Sam Price|ICS Accounting

    Sam Price|ICS Accounting UKBF Newcomer Free Member

    11 2
    Hi Zinnia48,

    This depends on whether you use cash basis or invoice basis.

    1. If you based your figures on a cash basis, you declare income/expenses on when you were paid.
    2. If you based your figures on when you raised an invoice, you declare income/expenses when you raise the invoice.

    If you want to close off all your self-employment income in the 2017/18 tax year, use the invoice basis and include the income you've just received on that return.

    Hope that helps, don't hesitate if you need clarity.

    Posted: Mar 28, 2018 By: Sam Price|ICS Accounting Member since: Mar 27, 2018