Claiming future expense

[NotAllThere]

It would be fraud. (Notwithstanding ladymuck's answer).

Thread closed.

[lecyclist]

It's gonna be dry days with IR35. I'd like to save on tax while I'm still making a profit

Understood. That's what makes Estonia and Latvia attractive from a corporation tax point of view (taxation only at the point of distribution/ drawdown).

But that is not an option available to you in the UK.

[northernladuk]

Indeed. The OP would be much better off with the NLUK_Dutch_Antillies scheme. 90% take home guaranteed. Just remit your invoice to the offshore account and you can be certain of getting your 90% back.

And the best thing about the NLUK_Dutch_Antillies scheme is they make charitable donation such as to mod ban hammer awards....

I'm sure said organisation would be quite happy to pay him now before he's put the invoice in.

[ladymuck]

You could make an accrual for a future expense if you have received the benefit of the expense before making payment.

This usually occurs where something is purchased on delayed payment terms, such as a company buying a load of computer equipment and having 60 days to make payment.

As you won't be receiving any goods prior to making payment for them, you cannot do this.

You could look into Provisions, which are wollier than accruals, but I doubt any respectable accountant would sign that off.

Nice try though.

[BrilloPad]

So much wrong with this question it's untrue. Dunno where to start but it's not an expense until it's been paid. That alone closes this silly thing down.

This level of ridiculousness would be very gratefully received in General. Could a mod make it so.

Indeed. The OP would be much better off with the NLUK_Dutch_Antillies scheme. 90% take home guaranteed. Just remit your invoice to the offshore account and you can be certain of getting your 90% back.

And the best thing about the NLUK_Dutch_Antillies scheme is they make charitable donation such as to mod ban hammer awards....

[northernladuk]

It's gonna be dry days with IR35. I'd like to save on tax while I'm still making a profit

Wow.. And you are still carrying on

[cwah]

are you planning on making a loss next year or something?

It's gonna be dry days with IR35. I'd like to save on tax while I'm still making a profit

[Lance]

It sounds better than paying it now then claim corporation tax back later.

are you planning on making a loss next year or something?

[jamesbrown]

Chuckle.

Fereal?

Yes, "cwah", that is absolutely fine, good boy. Also, while you're there, feel free to deduct anything else from profit that seems like a good idea. If you have any clownshoes, for example, that is probably an allowable expense.

[northernladuk]

But isn't it the same if I can claim back loss on the next fiscal year?

Oh dear.

[northernladuk]

So much wrong with this question it's untrue. Dunno where to start but it's not an expense until it's been paid. That alone closes this silly thing down.

This level of ridiculousness would be very gratefully received in General. Could a mod make it so.

[cwah]

Um, No...

But isn't it the same if I can claim back loss on the next fiscal year?

[eek]

Hello

Is it possible to claim for the current fiscal year expense for the next year that haven't been paid yet?

For example, if I know my LTD will pay £40k in pension and £500 in phone cost this fiscal year and the same next year

Could I deduct it from profit on the year 2020? So I total expense of £81k?

So if my profit is £100k, could I deduct £81k to include expense and not pay corporation tax on it?

It sounds better than paying it now then claim corporation tax back later.

Um, No...

[cwah]

Hello

Is it possible to claim for the current fiscal year expense for the next year that haven't been paid yet?

For example, if I know my LTD will pay £40k in pension and £500 in phone cost this fiscal year and the same next year

Could I deduct it from profit on the year 2020? So I total expense of £81k?

So if my profit is £100k, could I deduct £81k to include expense and not pay corporation tax on it?

It sounds better than paying it now then claim corporation tax back later.