Self-employed tax, choosing which year to apply earnings to

[Kenickie]

I did some self-employed work for a couple of other unis in tax year 22/23. But because they were both really shit at paying and I was shit at chasing them up, I didn't get paid for months, so I actually received the money in tax year 23/24 (IE this tax year we're in now).

Am I right in thinking I can pay the tax on it in this tax year rather than last because that's when I actually got paid?

Because of having my unpaid months of maternity leave in this tax year, I've earnt quite a lot less from my normal job than usual. But will it only really make a difference if it means I change tax thresholds?

Also if I do decide not to pay the tax in the 22/23 year, do I need to make a note that I did some work that will appear on my next tax return or will HMRC not care at this point?

These might be really obvious questions, but I always worry about doing the wrong thing and I find HMRC guidance really complex (or often I think I've read something that solves it and then can't find it again when I want to double check).

[Princess Morripov]

I would only ever include it on the tax year I received it.

I also wouldn’t think it would need calling out on the previous return as outstanding money either.

[Rebel Pebble]

Mr R and I do this differently. I go by the date on my invoice, so in your case I would put it in 22/23 assuming the invoice was dated before April. It's actually simpler for me admin wise because my invoices are consistent and always within the month I worked, while some companies are utterly rubbish at supplying Remittance Advices and when I get paid varies wildly.

Mr R on the other hand mostly doesn't invoice, because he has an agent, so he does tax year based on the Remittance date, ie when he was paid. This also works better for him as he does VAT too.

As long as you're consistent I think either way is fine. Mr R and I have the same accountant who is happy with our different approaches.

No need to tell HMRC that you worked until you put the earnings in your return.

[Kenickie]

Brilliant, thank you both!

[Kenickie]

I've just realised that hopefully, I won't actually need to do a tax return for 22/23 if I haven't done any SE work so that decided me to go by payment date! (I have filled in the HMRC form to get them to agree to pause me for this year so fingers crossed they approve it.)

The main thing I've done for the last couple of years is in Dec, so should normally be paid well before April so usually it won't make a difference but having a year off filling in a tax return certainly will!