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

edited 30 November -1 at 1:00AM in Small Biz MoneySaving
2 replies 1.7K views
bikerchrisbikerchris Forumite
157 Posts
edited 30 November -1 at 1:00AM in Small Biz MoneySaving
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?
If someone is worth thanking - click on the 'Thanks' button on their response. It's just a nice thing to do :-)

Started debt at 17, stopped by 25 :-D ...I'm in debt again because of property :-/

Replies

  • PennywisePennywise Forumite
    13.3K Posts
    Part of the Furniture 10,000 Posts Name Dropper
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    Are you using the "simplified cash basis" for your accounts and tax return or the normal "accruals" basis?
  • bikerchrisbikerchris Forumite
    157 Posts
    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
    If someone is worth thanking - click on the 'Thanks' button on their response. It's just a nice thing to do :-)

    Started debt at 17, stopped by 25 :-D ...I'm in debt again because of property :-/
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