work in progress and corporation tax

[Barney's pal]

My partner runs a small business and I used to do the books. At our business year end I always had to write a list of work in progress (jobs ongoing and not invoiced on the year end date) I think our old accountant said that the work in progress is counted in what you are charged corporation tax on. Now we have a new office girl and she said surely if you pay tax on work in progress, once these people are invoiced then that will go in next years figures and you will pay corporation tax on them again. Can anyone shed any light on this subject?

[buildersmate]

So in summary WIP gets included in the year in which it is incurred, and tax is paid on the value accrued in only one of the years. Thus it isn't double-counted for tax.

[Barney's pal]

thanks guys thats really helpful.