A colleague and I are having a bit of a debate.
An employee's car tax runs from 1st Oct 2014 to 30th Sept 2015, payable at the end of the period. For ease, let's say annual cost is £120.
As at end of June 2015, she wants to accrue 9 months, £90. In my opinion, only £60 should be accrued because the £30 relating to 1st Oct 2014 to 31st Dec 2014 belongs to FY 2014 and should have been accrued then.
Who is correct?
Thanks!
An employee's car tax runs from 1st Oct 2014 to 30th Sept 2015, payable at the end of the period. For ease, let's say annual cost is £120.
As at end of June 2015, she wants to accrue 9 months, £90. In my opinion, only £60 should be accrued because the £30 relating to 1st Oct 2014 to 31st Dec 2014 belongs to FY 2014 and should have been accrued then.
Who is correct?
Thanks!