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Mobile Phones

Volume 496: debated on Wednesday 16 September 2009

To ask the Chancellor of the Exchequer what HM Revenue and Customs’ policy is on finalisation of historic unused credit received by mobile telephone companies from consumers. (291370)

HM Revenue and Customs’ policy is to follow the commercial accounts as prepared under generally accepted accounting practice (GAAP). It is normal accountancy practice as part of GAAP to draw up accounts on the accruals basis. Under this practice, credit purchased by consumers that remains unused and is not repaid is a taxable trade receipt.