Work In Progress

[lightng]

I'm doing some side work for another client other than my main. Its a five month piece of development work for which I get paid when deliverables are met. Anyway, it spans two tax years so at my year end, some of it could feasibly appear as work-in-progress.

My question is, is there any benefit in me declaring it as Work In Progress. I know that Work In Progress is both a balance sheet and P&L item so will this affect corporation tax adversely if I fess up to it?

[Cheshire Cat]

I'm doing some side work for another client other than my main. Its a five month piece of development work for which I get paid when deliverables are met. Anyway, it spans two tax years so at my year end, some of it could feasibly appear as work-in-progress.

My question is, is there any benefit in me declaring it as Work In Progress. I know that Work In Progress is both a balance sheet and P&L item so will this affect corporation tax adversely if I fess up to it?

No idea.

[DonaldG]

Yes it will increase your tax bill, work in progress effectively adds on to your sales income in the profit & loss account. Your accountant will give you advice on how to value and account for it.

[lightng]

OK Thanks. Yeah I'll speak to the accountant.