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Posted Wed, 06 Apr 2022 09:15:57 GMT by philrosenberg
I've made a payment through my credit card in the 2021/2022 financial year and the repayment of that credit card will be in the 2022/2023 new financial year. I do my accounting on a cash basis. Am I correct in thinking that the expense should go in the 2021/2022 accounts?
Posted Fri, 08 Apr 2022 11:08:53 GMT by HMRC Admin 20
Hi philrosenberg,

Cash basis refers to a major accounting method that recognizes revenues and expenses at the time cash is received or paid out.
This recognizes income at the time the revenue is earned and records expenses when liabilities are incurred regardless of when cash is received or paid.
Therefore it will be 2021/22.  

Thank you.

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