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Cash basis - can I add one expense from 6/4 to current fiscal year?
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smpNWI
Posts: 30 Forumite

I'm a sole trader using cash basis accounting.
There's a sizeable purchase I want to make but the sooner that can be done is Tuesday, April 6, unfortunately.
The tax year ends Monday. Is there a (lawful) way to buy this on Tuesday but still claim it as an expense for 2020/21?
There's a sizeable purchase I want to make but the sooner that can be done is Tuesday, April 6, unfortunately.
The tax year ends Monday. Is there a (lawful) way to buy this on Tuesday but still claim it as an expense for 2020/21?
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Comments
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No, of course not, that's the whole point of the cash basis. You can't claim until you pay.
If you were on the normal/accruals basis, you'd be able to claim if you contracted to buy it, as it's the contract date that matters rather than payment date.
If it's that important, consider leaving the cash basis.1 -
Have you dealt with this company before and do you trust them? If so and you have their bank details, you could make a payment today which would show in your banking as being in this tax year.
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