really urgent visa ending tommorrow( tier 1 general)

[mahi20120]

hi

i am claiming for the period between 1 jan 2012 to 31 dec 2012. I am salaried as well as self employed. i have two questions regarding my self employed income:

1. I have an invoice generated on 31 dec 2012 and paid on 4th jan 2013. I am claiming this income for the claimed period. Will this be allowed or will it be considered outside the claimed period by the ukba. it was for the work done in dec.

2. my invoice for 30 march 2012 is been paid on 11 april 2012. do i have to pay tax for this in the last tax year or in this tax year.

Also for my salaried if i change my claim period to 5th jan 2012 to 4th jan 2013 ( and for my payslip of 31 jan 2012) will this affect my salary payslip of jan 2012 as it is outside the claimed period.( As i am including days which are before the claim period)

please any moderators or senior shed light on my situation. it is driving me nuts

Please

[askhan]

I have an invoice generated on 31 dec 2012 and paid on 4th jan 2013. I am claiming this income for the claimed period. Will this be allowed or will it be considered outside the claimed period by the ukba. it was for the work done in dec.

ukba is concerned about the claim period. so 4 jan is ok as long as you attach the statment, it is count inside the period

my invoice for 30 march 2012 is been paid on 11 april 2012. do i have to pay tax for this in the last tax year or in this tax year.


you can can only pay tax after the moies hit your account, so you have to pay tax later not in march


Also for my salaried if i change my claim period to 5th jan 2012 to 4th jan 2013 ( and for my payslip of 31 jan 2012) will this affect my salary payslip of jan 2012 as it is outside the claimed period.( As i am including days which are before the claim period)

claim period should be from 1 jan to 31 dec. why you want to change to 5 to 4th jan ??

[mahi20120]

[
THANKS for the prompt reply
you can can only pay tax after the moies hit your account, so you have to pay tax later not in march"

i got worried because i read the following link
http://www.freeagent.com/central/tax-re ... ess-income
Also i have already paid my tax for last year without including the money received in april 2012. i was thinking now to revise my tax and pay interest or expenses if any.



claim period should be from 1 jan to 31 dec. why you want to change to 5 to 4th jan ??[/quote]

i was only changing it to include the money received on 4th jan 2013.


Please correct me if i am wrong

[mulderpf]

No, the advice you have so far is wrong.

Tax is paid on an invoice basis not on a payment basis. Therefore, for your invoice on the 30th of March, you were supposed to have included that in your income statement for last year. It is incorrect to say that you can only pay tax on money you receive. You pay tax based on invoices, not receipts (the same way you do accounting). If the person doesn't pay you ever, then you can recover this later as a bad debt expense.

What you show UKBA is a bit trickier, but Company or business accounts says that if you are showing a profit and loss account, your accounts must be prepared according to statutory requirements (which will mean that an invoice generated on 31 Dec 2012 will be counted a profit on 31 Dec 2012, not on the date that payment was received).

[mahi20120]

No, the advice you have so far is wrong.

Tax is paid on an invoice basis not on a payment basis. Therefore, for your invoice on the 30th of March, you were supposed to have included that in your income statement for last year. It is incorrect to say that you can only pay tax on money you receive. You pay tax based on invoices, not receipts (the same way you do accounting). If the person doesn't pay you ever, then you can recover this later as a bad debt expense.

What you show UKBA is a bit trickier, but Company or business accounts says that if you are showing a profit and loss account, your accounts must be prepared according to statutory requirements (which will mean that an invoice generated on 31 Dec 2012 will be counted a profit on 31 Dec 2012, not on the date that payment was received).

just checking if what i understood is correct then

1) i can claim the amount for invoice of 31 dec 2012 as earnings for claimed period by ukba

2) i have to pay tax and include the march invoice in previous year

Please could you elaborate as to how my accountants reports for self employed should be... It should start from the day worked i.e march 1st 2012 to 4th dec 2013 or aprill 5 2012 to dec 31 2012.
your opinion is highly valued