The decision maker should also apply DMG37108 when expenses are paid in arrears
The assessment period is the period of the profit and loss
account 1.6.98 to 31.12.98.
1) Rent for a workshop is £100 a calendar month, due on
the last day of each month. The payment due on 31.12.98 for that
month is made on 6.1.99. It is relevant to the assessment period
and should be allowed as an expense together with the payments made
for the rest of the period (June to November 1998).
2) Rent for a workshop is £1200 a year due 6 months in
arrears on 31 March and 30 September.
The total paid for rent during the assessment period was £600 (2.1). But the amount relevant to the assessment period, and allowable as an expense, was £400 + £300 (2.1 + 2.2) = £700.
