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April 30, 2019
Question

Accruing profit across multiple years for large purchase

  • April 30, 2019
  • 1 reply
  • 1 view

Hi Guys,

 

Super small business here. Just submitting my 2018 accounts. But here's the situation:

 

Year End July 2018 showing a small profit. In September 2018 I spend the small profit on a business trip (flights) and the purchase of new computer equipment.

 

Is there a way in which I can allocate the profit from YE 2018 to cover the purchases in the following year. Thus avoiding paying Corp Tax on money that was spend soon after?

 

Thanks for any help.

Sam

1 reply

Rustler
Level 15
May 1, 2019

No there is not

 

You earned that money in that fiscal year, the next fiscal year you spent it so in the next fiscal year you will have an expense and an asset on the books.