Tax return question... April fees?

[buzzy bee]

Just wondering, my fees are payed on 1st of the month, so would I include the April fees in last year's tax year, and put my income for this tax year as £0.00?

[Chatterbox Childcare]

If you are charging in arrears put it in 10/11 and if in advance put it in 11/12. Basically put it in the year that it relates too

Hope that makes sense

[Penny1959]

I receive some of my fees in advance on 1st month and put them through with the tax year just ending - because I have receive the income in that year. To my mind even if parents stopped sending their child / gave notice the income is in year just ending.

Expenses will be put through as spent so will often be in the next tax year.

I don't know if this is correct in HMRC terms but it makes locical sense to me.

Penny

[appleblossom]

It depends on your own tax year dates. You select your own when you register as self employed. If you register in November you may choose November to October as your dates. Mine is April to March so fees for April 2011 are in tax year 2011-2012.

[Chimps Childminding]

I do monthly bills on the last Friday of the month so March's bills were done upto 25th March. That means I have the last week of March and the first week of April to put in to this tax year as I always do mine up to 5th April (thought that was what we were supposed to do).

But I have confused myself as I now have April 2010 and April 2011 to put in, or do I put the week the end of March and beginning of April into next years?

sorry brain not working this afternoon

[Penny1959]

Hi Carolyn

I always have 2 April entries as my accounts run to 5th April (you do have a choice of accounting dates) but I find it easier to have the standard tax year otherwise your personal allowance is part of one year and part of the next.

Therefore to my logical brain I will always have some entries from 6th April the one year and some from 1st - 5th April the following year.

In general HMRC are not that bothered about childminders as incomes so small - I was told once that as long as enter everything and have a system that is easy to follow that will be fine. So as long all income and all expenses are shown you should not have a problem.

As said in previous post - I am not expert and HMRC may think differently - but unless I change my end of accounts year to end March I don't see how I can not have 2 April entries.

Penny

[Chimps Childminding]

Hi Carolyn

I always have 2 April entries as my accounts run to 5th April (you do have a choice of accounting dates) but I find it easier to have the standard tax year otherwise your personal allowance is part of one year and part of the next.

Therefore to my logical brain I will always have some entries from 6th April the one year and some from 1st - 5th April the following year.

In general HMRC are not that bothered about childminders as incomes so small - I was told once that as long as enter everything and have a system that is easy to follow that will be fine. So as long all income and all expenses are shown you should not have a problem.

As said in previous post - I am not expert and HMRC may think differently - but unless I change my end of accounts year to end March I don't see how I can not have 2 April entries.
Penny

Thats what I was wondering!!! Don't seem to remember it having been a problem in the past but all of a sudden my brain stopped working - thanks Penny!!!!