Invoicing before work is carried out?

[zcacogp]

Chaps,

Here's one that must have been done before. I have a customer (private individual) who wants some work done, but wants to pay for it before the 5th April so it fits in this tax year rather than next. The work will mostly take place after this date.

I'm a business, so the April tax year cut-off makes no difference to me, but is there anything wrong with invoicing before the work has been carried out, for these reasons? If we are to go ahead with this plan, is there anything to look out for? Are there extra problems if it is invoiced before the 5th April but payment is made after the 5th April?


Oli.

[zcacogp]

Chaps,

Thanks for the advice.

Eric: What do you mean by "Accrue for the cost"? (To confirm, this is a private individual trying to get an expense into this tax year rather than the next in order to lower his income tax level).

T1pper - thanks.


Oli.

[zcacogp]

Eric,

Thanks, but the purchaser in this instance is a private individual, and the work being done is a (small) refurbishment of a house which I will be taking on to let for him. There is no business and he wants the expense in this tax year (not next year) as he wants to set it against income tax.


Oli.

[zcacogp]

Mr Overheads said:

zcacogp said:

To confirm, this is a private individual trying to get an expense into this tax year rather than the next in order to lower his income tax level

Presumably if he's offsetting expenses agaisnt income for tax, then he's not a private individual, he's a sole trader. i.e. he's running a non-incorporated business? In which case Eric is spot on (as usual).

Penny has just dropped.

Apologies for being fick. Yes, Eric is on the money (in so many ways!)

Thanks. And thanks for the answers.


Oli.