Friday, July 11, 2008

Did the 2007/08 tax year end on Friday 4th or Monday 7th April?

The last day of fiscal year 2007/08 was Saturday 5 April and the first day of 2008/09 was Sunday 6 April.

Does it matter?

Well I recently heard an accountant talking about how it could be very relevant to one his clients who is affected by the new remittance basis rules. The client was planning to avoid making any remittances to the UK in 2008/09. He arranged his last remittance on Friday 4 April 2008.

However, although he instructed his bank to make the remittance on the Friday, and the money left his US bank account that afternoon, it did not arrive in his UK bank account until Monday 7 April.

Was it remitted on the 4th (in 2007/08) or on the 7th (in 2008/09) when it was received?

The sum involved was substantial. Would you credit it?!
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