Earned/Received taxable income query.

keith1950

Hi, my son is presently self employed and we are preparing for completing an online self assessment.

My query is.... is his income for the tax year 2013-2014 based on what he has earned or what he has actually received.

To explain , he is paid for contract work in two week blocks , the latest being 16/03/14-29/03/14 and the next one being 31/03/14-14/04/14 , however the 'pay dates' for these occur two weeks later so would fall after 5th April ?

If it is the 'earned date' do we just include 16/03/14-29/03/14 even though some of 31/03/14-14/04/14 would have been before 5th April ?

Sorry if this sounds confusing, thanks in advance to anyone who can shed a light on this.

antrobus

keith1950 wrote: »

.....My query is.... is his income for the tax year 2013-2014 based on what he has earned or what he has actually received.....

By default, his income is assessed on the basis of what he has earned.

However, I believe that, starting in 2013-2014, he can elect to be taxed on a cash basis. I'd guess that there will be box somewhere on the SA return that you have to tick.

uknick

Does this help?


https://www.gov.uk/simpler-income-tax-cash-basis