Uncashed Cheques - Tax Return

monkey_writer

Does anyone know what would happen if I got it the wrong way around and they questioned me on it?

jonesMUFCforever

Surely if you don't declare it as income last tax year it will be counted this tax year?
So you will pay tax on it next time around.

Cook_County

monkey_writer wrote: »

Does anyone know what would happen if I got it the wrong way around and they questioned me on it?

Yes you will be penalised for filing incorrect accounts and failing to keep accurate records.

Accrual basis is mandatory. Have you got a recording of your conversation with the person at HMRC who failed to understand the law?

monkey_writer

I don't have a recording...

I did ask them what would happen if I got it wrong, and they said nothing - as it would just be taxed the next year instead.

dtaylor84

See http://www.hmrc.gov.uk/manuals/bimmanual/bim74001.htm - specifically:

rather than the ‘earnings’ or ‘accruals’ basis which traders and companies must adopt.

John_Pierpoint

You are trying to jump the gun.

In the mean time HMRC is planning another administrative "train wreck" ?:

Simpler Income Tax Concerns - CIOT comments

The CIOT comments, sent to David Gauke MP, Exchequer Secretary to the Treasury on 5 July 2012, as a follow up submission regarding concerns about the proposals in the recent consultation on introducing a cash basis for small businesses subject to income tax. Our original submission and consultation document are also attached.


Also attached, as an appendix, is our original submission on 'Simpler Income Tax for the Simplest Small Businesses'. This submission, along with the Consultation document can be found at:
http://www.tax.org.uk/tax-policy/public-submissions/2012/Sim_IT_Sim_SBusi
http://www.politics.co.uk/opinion-formers/chartered-institute-of-taxation-ciot/article/ciot-believes-the-cash-basis-proposals-are-still-too-complex
.