Purchased on 5th April, cash left account 6th April, which tax year is it in?

Accounting
1

Hi All,

Have searched and found lots of stuff about invoices carrying into new tax year but I have a purchase receipt for 5th April but money didn’t leave account until 6th April.

Really not sure which year to account for it in.

Any Help appreciated, Peter.

2

Hi @HCS

A purchase invoice should be accounted for on the date on the document itself, or the ‘tax point’ (if there is one).

If it’s unpaid at the close of the accounting period, this will show up on your balance sheet as a liability until it is paid.

I hope that helps!

3

Thats great Thank you.

Peter.

4

Depending exactly what the purchase is for, it might be more appropriate to move the amount into the following year with a pair of journals (e.g. if the purchase is your premium for the next year’s insurance policy). An accountant would be better placed to advise on this than I am.

5

Thanks Ian,
It was just some small parts I bought for a customer, who will have paid for them in this tax year.

Peter