Future expenses?

[QwertyBerty]

Hello,

I would like to put aside about £5000 to pay the missus's wages in the coming tax year so she can have a reliable income regardless of my intermittant IT contracts. Can I put this down as a future expense in my accounts now?

Thanks,

QB.

[Alan @ BroomeAffinity]

Nope. You should account for wages (and any other expenses) on an accruals basis. Bascially, if you paid them (or provisioned for them) now, you would need to adjust again to show them applying to the appropriate accounting period with a prepayment adjustment on your Balance Sheet.

[Sockpuppet]

Hello,

I would like to put aside about £5000 to pay the missus's wages in the coming tax year so she can have a reliable income regardless of my intermittant IT contracts. Can I put this down as a future expense in my accounts now?

Thanks,

QB.

Don't treat the company as a tax vehicle then. Leave some money in it other than bleeding it dry. If you allocate £5000 in the accounts to pay her than I don't see the issue.

[QwertyBerty]

I should mentioned i'm doing this cos my financial year end is on 31 Mar and I want the monies to be "carried over" into the next financial year without incurring CT