Accounting for Tax incentive for online filing

Shirl

Could someone clarify this for me please, if you submit say 2008/09 tax returns online prior to a company's year end, presumably the incentive will show as other operating income for 2008/09. What happens if the tax return is filed on line 2 days after the company's year end, would you still show the incentive in 2008/09?

Many thanks for your advice

Shirl

deanshepherd

I wouldn't normally accrue the filing incentive, I would report it in the year it is actually used (or refunded).

Unless perhaps this distorts the figures so that you would otherwise have a year without any incentive shown followed by a year with two incentives.