Order commitment and CT

[tractor]

OK it's Sunday and accountant is prob at church.

Myco year end is 31st Dec. PC order placed on 30th Dec, not invoiced until 3rd Jan.

Do I account for the cost in last year regardless of invoice date and payment? Obv the VAT will go in this quarter but what about the cost? I have the order documentation which is dated 31st Dec prob because of the overnight batching of orders at the supplier.

Ta.

[TheCyclingProgrammer]

I would simply use the invoice date.

I suppose you could accrue the cost in your previous years accounts but I'm not sure why you'd bother.

[philip@wellwoodhoyle]

The effective date for capital allowances, which is what I assume you want to do, i.e. claim capital allowances in the 2014 year, so to get tax relief a year earlier, the normal rule is that expenditure is incurred on the date on which the obligation to pay becomes unconditional. So unless you could have cancelled the order (maybe need to review the sellers' T&Cs), it would look as if the "obligation to pay" occurred on 31/12 when your order was presumably accepted by the seller.

[tractor]

...

The effective date for capital allowances, which is what I assume you want to do, i.e. claim capital allowances in the 2014 year, so to get tax relief a year earlier, the normal rule is that expenditure is incurred on the date on which the obligation to pay becomes unconditional. So unless you could have cancelled the order (maybe need to review the sellers' T&Cs), it would look as if the "obligation to pay" occurred on 31/12 when your order was presumably accepted by the seller.

Yes, that was exactly what I wanted to know for. I guess that I should have ordered a week earlier but it was a busy time.