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27 Jul 21 05:03
Date Joined: 15 Jun 03
| Topic/replies: 17,102 | Blogger: elisjohn's blog
hypothetical question !

if i do work for someone and am self employed the work is eg august 2021  to end of march 2022, we agree he pays me end of the work in total £15000, he gives me a cheque in  may 2022 for the full amount,   when do i have to declare this to tax  , im certain  by april 2023, ( but i just wanted confirmation ,  thanks), and if he actually did give me the cheque on time in  march 2022, would that go on 2021/22  tax .
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Report Johnny The Guesser July 27, 2021 8:45 AM BST
The normal/ traditional basis to use would be to submit your figures for 21/22 to include work carried out in the year , even if paid afterwards.
However , small businesses can declare on the cash basis if you wish - you need to tick a box to tell HMRC that you have used this basis - In which case you could declare in the 22/23 tax year if actually paid in that year.
If you use the 'cash' basis  for income you must use this for your expenses also and be careful you don't double count or miss anything moving between tax years.
Which to use ? - think about your tax position for each year - use of personal  tax allowances / rates of tax etc.

Google cash basis HMRC for full details.
Report elisjohn July 27, 2021 8:59 AM BST
personally it would be better for me to do the work and declare it on the 22/23 tax taking my tax position as you say, thanks
Report Aspro July 27, 2021 9:48 AM BST
For the first return you will have until 31/01/23 to submit your self assessment. If you declare it for the 22/23 year you'll have until 31/01/24 to submit. Any later and you will be fined. You need to register self-employed first.
Report N-east Correspondent July 27, 2021 10:59 AM BST
I recently submitted my tax return for year 20-21, definitely a part saying - don't declare earnings for which you have not yet been paid, so if client pays you next May for work carried out in 21-22 that should be added in tax return for 22-23. However always worth checking with an accountant or indeed HMRC, who I found it easy to deal with considering this was my first self-assessment tax return I have completed and included both PAYE and Sole Trader earnings.
Report ----you-have-to-laugh--- July 27, 2021 1:11 PM BST
If you do ring them Ellis, and they are usually very helpful... It's an idea
to record your phone call,

Can be confusing, and you can listen
back without confusing memory.
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