Worked and paid in different financial years

[gaff]

Last year I worked a job getting paid a day rate that ran from the end of March 2016 to end of April 2016.

10 days of the work was in the 15-16 tax year.

I was paid for the whole job at the end of April.

However in my self-assessment I want to declare those 10 days of income in the 15-16 tax year.

But the company I worked for said that because I was paid at the end of April, it will all be included in the 16-17 year.

Can anyone advise if the money for the 10 days should go in the 15-16 tax year or 16-17?

[Neil@Intouch]

Declare income earned (not received) in the tax year
If you’re not using the cash basis to prepare your accounts, you would include income in the tax year you earned the money, not the tax year you received it.

So, if you issued an invoice for work done in March 2016 and your client paid you on the 30th April 2016, that invoice can be included in your income for the tax year to 5th April 2016 because that was the tax year in which you did the work.

[philip@wellwoodhoyle]

Not clear what your status is. Are you:-

1. A self employed sole trader, or,
2. An employee of the client or paid via an umbrella, or,
3. Trading via your own limited company.

[gaff]

Not clear what your status is. Are you:-

1. A self employed sole trader, or,
2. An employee of the client or paid via an umbrella, or,
3. Trading via your own limited company.

I was number 2, technically an employee. Maybe this is the wrong forum.