Refunding invoice from previous tax year

Hi, if I refund an invoice that was paid by a customer in the previous tax year, does the refunded amount come off my turnover for the current tax year?

Hi 

This would depend on whether you use the cash basis.  
If you use the cash basis, it would come off this year, as that is the tax year the money came out of your account.  
If you use the traditional accounting practice, then it would come out of last year.  
You would need to amend your tax return to reduce your gross turnover, expenses etc.

Thanks

I assume that the cost of processing the refund (PayPal fees) would also need to be moved back to the relevant tax year? Or would that come off this year’s turnover?

Hi,

Again, this depends on the method of accounting you use.

Thank you.