Taking booking deposits query

Taking booking deposits query

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condor

Original Poster:

8,837 posts

249 months

Tuesday 14th February 2017
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Hi - wonder if anyone can help.
I don't usually take booking deposits far in advance - if I do start taking booking deposits for summer/winter 2017 holidays will they count as income for this tax year ( up to 5 April 2017) - even though the money is for later in the year?

condor

Original Poster:

8,837 posts

249 months

Wednesday 15th February 2017
quotequote all
Fairly certain it's cash basis - it's the simple paper self-assessment form I fill in.

condor

Original Poster:

8,837 posts

249 months

Thursday 16th February 2017
quotequote all
Thanks - the cash basis system sounds a lot easier.
I've taken a retainer/booking deposit for Christmas/New Year 2017 - so can I refund it and reprocess it in the next tax year ie after April 6 2017?

condor

Original Poster:

8,837 posts

249 months

Saturday 18th February 2017
quotequote all
I haven't got an accountant.
I'm a dog walker/house sitter so we're not talking lots of money biggrin
I think in future I'll say no to deposits unless there in the correct tax year.
Thanks for your advice smile

condor

Original Poster:

8,837 posts

249 months

Saturday 18th February 2017
quotequote all
Trabi601 said:
Does it really make a difference? - you have to declare and I'd assume pay tax on it at some point.
Not really - I wanted to know what would happen if I started taking deposits as a regular practice. Up to now, my regular clients check I'm available for their holiday dates before booking their holiday...or, if they've booked the holiday have to find alternative pet care arrangements if I'm not available. My thinking is having a deposit scheme would give peace of mind to both parties...and if they cancel ( for whatever reason) I won't be missing out that much. It also puts my business on a more professional level.
Currently, I don't have any terms and conditions written up - it's all done on mutual trust.