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Posted Sun, 19 Sep 2021 09:06:00 GMT by remembervictorip
1. When using traditional accounting, we are allowed to pro-rata the expense by days right ? 2. For example, for Mortgage Broker Fee, as our mortgage is last for 2 years, therefore, can we divide it by 365 day x 2 years? Box 44 Loan Interest and other financial cost Mortgage Broker Fee GBP 120 Starting Date 10 Dec 2020 Tax Return 05 Apr 2021 Therefore 116 Days (From 10 Dec 20 to 04 Apr 21) Calculated as: 120 x 115/(365x2) = GBP 10 (Rounded) Correct? 3. If the expense paid on Sep 2021 , however, it is the service charge of 10 Dec 2020 to 10 Mar 2021, i should include it in 20/21 tax return or it should included in 21/22 tax return ? 4. If the expense paid on Sep 2021, but the the service charge is charging 10 Dec 2020 to 9 Dec 2021 (date cover different from Q3), Should I include it in 20/21 tax return or include it in 21/22 tax return?
Posted Mon, 20 Sep 2021 15:01:51 GMT by HMRC Admin 2

You would only include expenses in your accounts if they belong to that accounting period.

Please see the section on expenses here:

HS222 How to calculate your taxable profits (2019)

Thank you.

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