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Post Info TOPIC: Customer has paid before invoice due to be raised
Gail72


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Customer has paid before invoice due to be raised
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Hi

 

I have come accross someting ive not seen before and unfortunately the situation is iffy re what tax year it fall into ie 14/15 or 15/16

A client has been paid by their customer on 1st April 2015.

This was payment for work for the month of April 15 and not due to be invoiced until 30 April 2015.  Invoices are always raised for the months work at the end of that month dated last day

The client was certanly not expecting to receive nor asked for the money to be paid in advance

It turns out as the client is self employed the client they were working for paid them early out of choice as it was a critical time in their business and they wanted to make sure the client didnt leave them etc

My issue is does this fall in the 14/15 tax year as monies received before end of tax year 14/15 or does it go into 15/16 tax year as the invoice for the work is dated 30th April 2015.

I have searched high and low on customs site and cant find anything re paid early

 

Can anyone advise and send any link they may know of please

 

Any help gratefully received !!!!!

 

Thanks

 

 

 

 



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Gail72


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ps the client runs their accounts re tax year dates as they prefer it this way

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Lady of Ledger


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Hi Gail

I would say that it goes into the 15/16 tax year as this will be the tax point of the invoice.

I would mark the payment as a 'deposit on account'.

Just out of interest - do you know it's permissible/HMRC acceptable to run the books from 1st April to 31st March.

Carol



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Carol Saunders
Lady of Ledger Book Keeping
Telford, Shropshire
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