Income calculations

[CHEEKY BEE]

I currently get paid in advance and was wondering if i get paid on 2nd of the month for the month ahead when it comes to April, although i will have received a full month's payment on the 2nd do i just calculate payment for the 2nd, 3rd, 4th and 5th april in accounts for that tax year, and carry the rest of the payment over to the next tax year (even though i would have already recieved it)

also i have just made a claim for milk but it is milk for the last tax year, april 2009-april 2010, so even though i have only just had the payment do i put it through last year accounts or this years 2010-2011.

thanks:)

[Chatterbox Childcare]

This is why I run my tax year from 1st April to 31st March.

What you should do is put it in your accounts as a prepayment and deduct it from your books for last year and then put it in your next years accounts. Will it make a difference to the tax you are paying?

Think about changing your tax year and it will make life so much easier.

Again with the milk, if you need the deduction put it through last year as due and then credit this year.

[CHEEKY BEE]

thanks Debbie

just one question, to run your tax year from the 1st april to 31st march do u have to get approval from HMRC first, thanks

[Chatterbox Childcare]

Not that I am aware of - give them a call and they can help with that one

[CHEEKY BEE]

will do, thanks Debbie:)