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Posted Mon, 06 Jan 2025 12:23:28 GMT by Sour YSH
I started my self employed business in 2022 and I used traditional accounting in 2022/23 self accessment. There was income for Mar 2023 but the payment was received on 11 Apr 2023, and I had included this income in my 2022/23 self accessment and paid tax. For 2023/24, I would like to change to use cash basis. From Guidance HS222, it mentions the one-off adjustment when entering cash basis that "Take away the amounts owed to you from your total cash basis turnover for this accounting period" if your customers owed you money at your accounting date last year, and you paid tax on that amount in that tax year, and your customers have paid you in this accounting period. So when I fill the online form of self accessment 2023/24: - should I just exclude the income received on 11 Apr 2023 from my Turnover in self accessment 2023/24 as I have already paid tax for it in 2022/23 when I select cash basis. - there is a question "Did you provide information about your 2023-24 profit on your 2022-23 return? (optional)". Should I choose yes or no for this question just for this case? - or any part of the form I should provide information for this one-off adjustment? Many thanks!
Posted Tue, 21 Jan 2025 14:00:59 GMT by HMRC Admin 8 Response
Hi,
The answer is YES to both.
Thankyou.

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