If I am paid for training in 2024 but take the course in 2025, do I enter these amounts in 2024?
The same applies to research that I carry out in, for example, December 2024, but people pay me in January 2025. In which financial year do I enter these amounts?
I consulted three AI chatbots here, all of which gave a similar answer:
"When recording costs and income, you must take into account the principle of allocation to the correct financial year. Here are the guidelines for both situations: This means that you record the payment in 2024 as a prepaid expense and then include it in your accounts as a training expense in 2025.
Research conducted in December 2024, paid for in January 2025
The income from the research must be allocated to the financial year in which the service was provided, i.e. 2024. This means that you record the income in 2024, even if the payment is not made until January 2025.
We hope this helps, and if in doubt, it is best to consult a specialist!
You really should try it out for yourself. Even if you don’t have a company number yet, you can already go ahead.
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