mind blank- prepayments

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
oh no my mind has gone blank this morning.

I have car tax paid on 29th september of £110,

is prepayment 3/12 or 9/12?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:mind blank- prepayments

    Hi

    What date are you working this out to?
    If its to say end of this month - April - then I would say its a prepayment 5/12 as I still have May June July August and September that I have would have prepaid this.
    5/12 x £110 prepaid

    If you are are working this out to a different date then whatever months you have not used you would enter this as prepaid.

    Anyone else agree?

    Yas
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:mind blank- prepayments

    To what date are the accounts drawn to?

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:mind blank- prepayments

    sorry year end, 31st december
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:mind blank- prepayments

    It'll be a 9 month prepayment then.

    Use of the road tax runs from Oct, Nov & Dec, The rest falls into the next finanical year.

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:mind blank- prepayments

    Paid September. £110

    Year end December

    This financial year cost = October/November/December
    = 3 months

    Paid in advance of next financial year (prepaid)= January to September = 9 months

    Assumption: the tax is for the year starting 1st October.

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