Dererring invoices to next tax year

[curitiban]

Hi

I only started trading 4 months ago so forgive my naievity regarding accounting.

My first job next year is Mid January and I probably won't invoice till mid Feb and get paid till mid March.I also have two other jobs lined up in Feb,March.

I envisage being out of the UK for virtually all of the next tax year so am hoping to declare myself non resident and claim back all tax for tax year 2009.

My question is can I defer the invoices for the work done in Jan-March 2009 till after April.This would massively reduce my tax bill for 2008 and the work done in early 2008 would not be invoiced or payed until april 2009.

[DonaldG]

The answer from an accountant like myself would be no. You would have to account for the income even if not invoiced until April, it is called Work in Progress, which you have to consider when preparing every set of accounts.

Sorry if this is not the answer you are looking for, maybe you should ask another accountant!

I would check with your accountant re Non Residence as there are lots of rules - split year treatment, where the income is earned/remitted etc

[Olly]

Also ..is the tax regime in Spain really better?
I'm in Germany and I'd love to stay under the UK system!

Remember your Ltd probably "should" fall under Spanish tax law too as that's where control resides

[curitiban]

Thanks Donald.

Most of my jobs are 1-3 weeks long and I normally invoice within a day or two of finishing the job.I got the impression that for accounting puposes it was the day of invoice that determines which tax year it comes under.If I invoice straight after each job as I do now would that be correct ?

Regarding non-residency I've done that several times before (although I was PAYE then) so I know that quite well.

Ollie

Who mentioned Spain ?

[DonaldG]

Yes invoicing straight after is the best way to do it, but you always have to recognise work in progress.

I wish i was working abroad - had to scrape about two inches of ice of the car windscreen this morning!

[where did my id go?]

You seem to be mixing up your personal situation and tax year with your companies tax year.

Or are you a sole trader?