March 20, 201115 yr I started a piece of contract work in late January which I will complete by the end of this month. Remuneration for the work is linked to the reciept of funding from the funding body that is sponsoring the website which has taken a month and a half longer than expected to process. Last week I recieved £640 but I still have to invoice for the rest, which amounts to about 5 times that figure. In the past 12 months I was finishing an MSc and spent some time abroad so I haven't been earning until now. When I am declaring these earnings I would obviously prefer them to fall under this tax year (ending this 6th of April) so that they count towards the tax-free allowance for this year and not the next. If I invoice for the remaining sum before the 6th of April can I avoid this money becoming part of my income for next year?
March 20, 201115 yr The tax date is the date which the project was complete or the invoice date if within 14 days. I believe you can claim for partially complete work as well, see http://www.hmrc.gov.uk/helpsheets/hs238.pdf or just phone them and ask.
March 29, 201115 yr I doubt the HMRC are going to be interested to be honest , I assume you invoice this business for your services so just create a proforma invoice with the total amount owed to you for the complete project and ensure you pay the tax at the end of January 2012 , thats if you want to pay the tax in 2009/2010 tax year. You do know you don't have to pay income tax on anything earned less than £6,475 http://www.direct.gov.uk/en/nl1/newsroom/pre-budgetreport2008/dg_172915
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