Cash basis accounting for online content creator

I need to know how an online content creator records the date payment has been received when using cash basis accounting. A customer pays to view content and the payment appears as 'pending' in the creator's website account. 7 days later this payment becomes available to be withdrawn by the creator into their bank account. My question is this, on what date are those earnings counted as being received? Is it the date the customer paid (even though this money can't be accessed by the creator until 7 days later?

Hi Patsy! I am not an accountant or employed by HMRC but I am a freelancer on the Upwork platform. I believe in cash accounting it matters when money is landed in your bank account. For example, if you had an income last tax year but did not cash it out to your bank account last year, but instead this year it will be this tax year declaration. Sorry if it wasn't helpful but that is how I understood it.

Thanks for your response. I was thinking though that if it's when you cash it out to your bank account that it could lead to people wilfully not cashing in towards the end of one tax year if it benefits them for the income to appear "received" in the following tax year ( or vice versa). I'd be interested to find out the official line on this from a HMRC employee if possible.

Hi,

Cash basis is the recording of money, using the date when it comes in and goes out of your business.

At the end of the tax year, you will only pay Income Tax on money received in your accounting period.
 
Traditional accounting practice records the date that money is invoiced and not received or paid out.  

Have a look at the guidance at below link, to be aware of the restrictions that apply when using cash basis. 

Cash basis

Thank you.