I was wondering when you are doing a persons tax return, would you include your fees in that years tax return or would you invoice and it would be included in the following year?
When I was in practice it was standard to accrue the accounts fees, so I would include in the accounts as an accrual and therefore include in tax return
I know there was an issue a while ago with HMRC challenging this saying it should be in the year it was invoiced in, but don't think they got very far??
Hope that helps
Jeremy
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lol Jeremy, typical of HMRC to think that they are above accounting standards.
The reality of course is that appart from the first year and the last year, maybe with slight variance there should be very little difference between using the accruals basis or cash basis so it was hardly worth them making a song and dance about anyway.
Shaun.
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Shaun
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It threw me somehow, as it was to do with fees charged by oneself. I had to change it from accountancy fees to any other expense to get my head around it.
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