What counts as income on your tax return?
Transcript
Hi, I’m Emily Coltman, I'm chief accountant to FreeAgent where we make online accounting software for small businesses.
So, what counts as income on your tax return?
Well, if you’re a sole trader you need to include your income in your accounts, not necessarily when you raised the invoice, not necessarily when you got paid for it, but when you did the work.
So, check your income, check your invoices, and see when you did the work; because there may be some that you actually have to put on this tax return rather than your next tax return.
If, on the other hand, you’re using the cash basis to prepare your accounts, then you put your income in when your customers pay you.
For more information about how FreeAgent can help you file your tax return, click the link above this video.
Thanks for watching and we’ll see you in the next clip.
Disclaimer: The content included in this guide is based on our understanding of tax law at the time of publication. It may be subject to change and may not be applicable to your circumstances, so should not be relied upon. You are responsible for complying with tax law and should seek independent advice if you require further information about the content included in this guide. If you don't have an accountant, take a look at our directory to find a FreeAgent Practice Partner based in your local area.
