Expenses incurred vs when paid for Tax year 2014

jack_pearse · 02-09-2015 12:26PM #1

Hi,
I can't seem to find the answer to this anywhere.
I am doing a self assessment tax return for rental income.
If I got work done at the end of 2014 and paid the bill at the start of 2015, which tax is this taken into consideration?
Likewise if I have medical expenses incurred from 2014 and paid in 2015 which tax year do I claim relief?
Thanks

gerrybbadd · 03-09-2015 01:15PM

jack_pearse wrote: »

Hi,
I can't seem to find the answer to this anywhere.
I am doing a self assessment tax return for rental income.
If I got work done at the end of 2014 and paid the bill at the start of 2015, which tax is this taken into consideration?
Likewise if I have medical expenses incurred from 2014 and paid in 2015 which tax year do I claim relief?
Thanks

If you're paying the bills in 2015, then you claim in the year it's paid.

thegolfer · 03-09-2015 02:06PM

jack_pearse wrote: »

Hi,
I can't seem to find the answer to this anywhere.
I am doing a self assessment tax return for rental income.
If I got work done at the end of 2014 and paid the bill at the start of 2015, which tax is this taken into consideration?
Likewise if I have medical expenses incurred from 2014 and paid in 2015 which tax year do I claim relief?
Thanks

Generally the date on the invoice will specify which year to take the expense into account, the accruals basis.
As for medical expenses sometimes the issuing doctor only records the fee when paid, and issues a receipt when paid.
If the documentation provided is dated in 2014 use for 2014. Revenue may disallow any potential refund in 2015 for documentation dated in 2014...

jack_pearse · 03-09-2015 04:02PM

OK great thanks
On a related topic, I downloaded our Form 11 (using ROS).
In the Social Welfare Payments and Pension Section there are Maternity Payments received for 2014 that the Revenue have on file received for DSP.

This is for 2014, however the Commencement date is 24/11/2014 which is fine. But the Cessation Date is 10/01/2105.
I checked bank records and there was one payment received between the 01/01/2015 and 10/01/2105.
Why would this payment be included for 2014 tax period?

thegolfer · 03-09-2015 06:23PM

The Revenue are normally aware of any SW payments made to you, and so they include the dates.

However record only those payments that you received in 2014, unless the payment in early 2015 related to the final week of 2014.
sometimes this type of payment can carry over.

If you do not return the final payment in 2014, return it in your IT return for 2015.

Expenses incurred vs when paid for Tax year 2014

Comments