Question about tax returns

[Biohyt]

Hello

Does anybody know how "debtors" and "prepayments" are reflected to upcoming tax year ?

For example: if we have a gross income of 30k, expenditure of 10k, our net income is calculated as: 30k-10k=20k. But, if we have made prepayments of 5k (for rent), paid a deposit of 3k, and got an accrual of 2k, our net income is calculated in two steps: 30k-10k=20k and then: 20k-(5k+3k-2k)=14k. (as far as I know, 14k is not taken into account when calculating the taxes due)

So my question is for the following up tax year, how can I reflect these numbers to my tax return ? Please correct me if Im wrong, but I think I should add the last years' prepayment of 5k under this years' expenditure (under the rent), and I dont have to do anything about the last years accruals. But I couldnt figure out what to do with the last years deposit of 3k. As I have received that amount in this tax year, should I calculate this amount as an income, or should I just leave it, and not take it into account as I did to accruals?

I appreciate if someone can guide me about this.

Thank you for your help

 

[Scalloway]

I couldnt figure out what to do with the last years deposit of 3k

If the deposit is is returnable it is not taxable, it is a creditor on your Balance Sheet.

 

[Biohyt]

I think I explained myself wrongly.

I am the one who has paid the deposit (3k) to the landlord last year. So the landlord was my debtor last year. Accordingly, I have calculated my asssets as: "prepayments" (5k)+ "debtors" (3k) last year. Can you inform me about under which category I should take these numbers into account, in this tax year ? In other words how to reflect my "assets" into this tax year? Should I count the last years prepayments under this years expenditure ? And similarly, while making this tax years calculation, should I ignore the last years debtors who has owed me (3k as the deposit) and returned to me (as the deposit I received in this year is not a source of income, but was paid by me initially) ?

And am I right about not taking accruals into account?

Many Thanks

 

[Scalloway]

Should I count the last years prepayments under this years expenditure ?

Yes

should I ignore the last years debtors who has owed me (3k as the deposit) and returned to me (as the deposit I received in this year is not a source of income, but was paid by me initially) ?

This is a Balance Sheet item, it does not form part of taxable income or expenditure.

 

[Biohyt]

Thank you for clarifying the issue Scalloway.