Hello tutor 🙂 I was reading accountancy’s tax note and had a little confusion in calculating employment income. It says follow the earlier tax year between when person entitled to and when the payment is actually made. In bpp revision kit, however, I have read the description that “reciept basis applies to employment income”. Which one is correct?
Both are correct – have you studied the OT notes and lectures? – see OT notes Chapter 9, Section 3.1, page 54 where the receipts basis is actually defined for this purpose