Refund of fees across the tax year end

[sing-low]

I am trying to get to grips with my accounts! As I am paid in advance, if I have to close (for illness), I refund the money owed by reducing the amount of the next invoice by the amount parents overpaid. My DD was sick at the beginning of April (12/13 tax year) so I was overpaid and am just now refunding via latest invoices. In my accounts, do I just put the money that I _should_ have been paid for the 12/13 tax year or what I was actually paid?

[karen2010]

What you were actually paid x

[Bluebell]

think if you can clearly show that you have made an adjustment and why you have made an adjustment then you can adjust your losses for year end totals.

If I get paid in advance I make a year end adjustment and carry them forward to the next year. Just like if you invoice someone and never get paid you can make an adjustment to write off those losses.

so in effect you have invoiced someone you raise a credit note for someone - date the credit note within the year end as that is the date effected.

Then when you raise the new invoice the credit note will in fact relate to that for the benefit of the parent but it will show in the previous tax year for the benefit of your actual earnings. does that make sense? So long as the tax man can clearly see WHAT the adjustment is, what it relates to and WHY you have done it then in my opinion you can most definitely do this.