Receiving deposit payments n one tax year for work in another

Hi, If I took a deposit in 22/23 for work to be undertaken in 23/24. In which tax years would I present the payments? I'm non-cash basis so am I correct in thinking everything would be in 23/24 as that is when the work is undertaken or do I split between the 2 years? To make it a little more complicated, the booking agent takes their cut from the deposit. See below for a quick example: Client books in January 22/23 for July 23/24. Let's say fee is £1000. I receive £100, booking agent receives £200. In July 23/24 - I undertake the work and receive the remaining £700 minus any expenses. Which tax year would I record everything in? Does the deposit and booking agent fee get recorded in 22/23 and the remaining income and expenses in 23/24? Or does everything get recorded in the 23/24 tax year as that is when the booking and therefore work was actually carried out? Thanks for your help, Jake

Is anyone able to help me with this please? Any advice much appreciated. Thanks, 

Name removed admin 

Hi Jake Perrett,

Traditional accounting practice, uses the arising basis, so the income would be taxable in the tax year that you invoice your client.
The cash basis method is applied to money coming and going out, so the amount paid in 22/23, would be taxed in 22/23 and the amount paid in 23/24 taxed in 23/24.

Thank you.

Ok, thank you for your response. It sounds like that I will need to record the income in 22/23. In that case can I also account for any expenses incurred back to 22/23 when the money was actually earned then. It feels silly to pay tax on £1000 when most of the money will go out in expenses to be claimed in the following year. Also, some of this work comes through a booking agent who receive the money at the point of booking however I don't receive the money until after the booking has taken place. As I personally don't receive the money until 23/24 is this when I record it?

Hi
Traditional accounting practice, uses the arising basis, so the income would be taxable in the tax year that you invoice your client.  
The cash basis method is applied to money coming and going out, so the amount paid in 22/23, would be taxed in 22/23 and the amount paid in 23/24 taxed in 23/24.
Thankyou.
 

Hi,

It dpeends on whether you are preparing your accounta under the cash basis or traditional accounting.

See further guidance below and associated links.

Cash basis

Thank you.