My business year ends on 30th April, but in terms of sales, as I’m paid for complete weeks, my sales invoices were up to the 28th April this year (Sunday) for my year end accounts - as was my VAT return, generated by Quickfile - so the remaining 2 days in April (29th and 30th) will be carried forward to next years’ accounting period.
The dilemma is that next year my final sales will fall on the 27th April, the year after it’ll be the 26th and so on. By 2027 will I have a full working week of sales to carry over, or should I make it a 53 week year? If so, how can I do that? My VAT returns through Quickfile automatically work on a 13 week quarter.
In summary, each year doesn’t have exactly 52 weeks, it’s 52 and a bit, so what do other people do to resolve this rolling year issue?
Hello @tonybrown
I would reccomend speaking to your accountant regarding this query as the support team are not registered accountants.
I did find this on .GOV which may help.
I will leave this thread open for now as there are some accountants on the forum who may comment.
From 6 April 2024 you will be assessed on your profits for each tax year that runs from 6 April to 5 April. This change will affect how you fill in your tax return if you use an accounting date between 6 April and 30 March.
There will be a transition year from 6 April 2023 to 5 April 2024, to allow any overlap relief that you may be due to be used against your profits for that tax year.
The changes will mean the amount of tax that you owe in the 2023 to 2024 tax year may change if you use an accounting date between 6 April and 30 March. You will be assessed on both the tax for profits for the:
- 12 month accounting period you have previously been using
- rest of the 2023 to 2024 tax year — minus any overlap relief that you may be due — spread over the next 5 tax years
No, your VAT returns in QuickFile work on quarter dates. In most cases there will be 13 weekly invoices in a quarter but every so often there will be 14, depending how many days there are in the quarter (it varies between 90 and 92 for different combinations of months) and precisely how the quarter dates line up with the day of the week on which you get paid.
If you wanted to be precise in assigning income to years I guess you could make a journal at the year end to apportion the last week in proportion to the number of days that fall in each year (on the last day of this year credit sales and debit accruals for the appropriate proportion of the net value on the first invoice from next year, then reverse that on the first day of the next year), but this may be overkill. Check with your accountant to be certain but it may be simpler just to live with the fact that some years will include 52 weekly invoices and some will include 53.
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