Would buy now pay later be within last years tax year?

bikerchris

Hello all,

Very sorry for this question if it seems common sense, but I'm self employed and in need of a new computer. I've found a place I can buy the parts from and they have an offer where I pay 10% of the cost now and pay the rest in 9 months time. Being a sensible lad, I intend on dividing the remaining balance by 9 months and ensure I save that amount each month.

My question is, can I only put the 10% I paid down as an expense, or can I put down the full amount even if I haven't paid it yet? I was hoping that as I've agreed an amount, it might count?

....Now I've written this down, I feel I've been too optimistic.

Look forward to any comments and thank you in advance.

Chris

P.S.

Example:

Computer parts total £1000, 10% deposit is £100.

Can I put down £100 or £1000 as expenses?

Pennywise

Are you using the "simplified cash basis" for your accounts and tax return or the normal "accruals" basis?

bikerchris

Pennywise wrote: »

Are you using the "simplified cash basis" for your accounts and tax return or the normal "accruals" basis?

Thank you responding Pennywise, I'm fairly certain I use the traditional accounting method...I actually had to research which. I can see you asked that because on the gov website it provides an example:

"You invoiced a customer on 28 March 2014. You record that invoice for the 2013 to 2014 tax year - even if you didn’t receive the money until the next tax year."

So if the above relates to income, expenses must be treated the same?

Am I right in thinking I should thank you for cleverly nudging me in the direction of the answer? In which case, THANK YOU :beer: (but do let me know if my assumptions are wrong!) I didn't even know there was a cash basis version. For those interested:

CASH BASIS GOV LINK: CLICKIE
BUSINESS RECORDS IF YOU'RE SELF-EMPLOYED: CLICKIE