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I have a client who is a self-employed author writing on average two books a year — she is paid about £30 000 for each book. For year ended 31 March 2007 she had partly completed two books so I included a sales figure of £50 000 in her accounts and tax return based on work in progress. This was her only income for the year and ensured that her personal allowance lower and basic rate tax allowances were not wasted.

However on completing her 2008 accounts I have discovered that the two books in question from the previous year were never published so the £50 000 of income has never materialised. I have also discovered that she has not written any books this year and has instead earned £100 000 of income as an after-dinner speaker talking about her books. My query is how...