After centuries of
confusion accountants, HMRC and law drafters are approaching an
understanding.
The latest stages of this
will affect professional firms more than others but the general principal is
worth highlighting as many in business are not aware of the rule that income
is
recognised in
accounts and for tax purposes as it arises, ie as and when the work is
done. This applies whether or not you’ve issued an invoice or even received
payment and can apply to part completion of the work.
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