companies house fine

lor
lor Registered Posts: 68 Epic contributor 🐘
edited June 18 in AAT member discussion
Hi all,

I have a client who received a £150 fine from comp house for late filing of abbr accounts to ch, my question is, is this an allowable expense for the ct600?.

Many Thanks in advance, Lor.

Comments

  • T.C.
    T.C. Registered, Tutor Posts: 1,430 Beyond epic contributor 🧙‍♂️
    I don't know much about Companies House fines, but as a general rule any costs which are incurred by "breaking the law" are not allowable. Hence fines and penalties are not allowable expenses. Would like someone else to clarify this though!
  • lor
    lor Registered Posts: 68 Epic contributor 🐘
    I was thinking that it wasn't allowable.... thanks T.C. unless other's say otherwise...
  • lor
    lor Registered Posts: 68 Epic contributor 🐘
    ok, i have posted this as dr expense cr bank, so i will reverse this and then enter dr dla and cr bank, this is correct isn't it?. Just want to double check my thoughts.
  • KernowAccountant
    KernowAccountant Registered Posts: 103 Epic contributor 🐘
    lor wrote: »
    ok, i have posted this as dr expense cr bank, so i will reverse this and then enter dr dla and cr bank, this is correct isn't it?. Just want to double check my thoughts.

    No. Debit bank, credit P&L. Then disallow on the tax computation. It has nothing to do with the director's loan.
  • T.C.
    T.C. Registered, Tutor Posts: 1,430 Beyond epic contributor 🧙‍♂️
    Good answer! Totally agree.
  • lor
    lor Registered Posts: 68 Epic contributor 🐘
    thank you both of you! - glad I asked now!
  • paulstafford
    paulstafford Registered Posts: 126 Dedicated contributor 🦉
    why do you need to reverse the bank transaction if payment has been made? just disallow the payment in the tax comp.
  • lor
    lor Registered Posts: 68 Epic contributor 🐘
    Hi, I've been thinking about this again today as I've left it to mull over for a few days, the bank trans has gone out the bank £150.00 and I have dr expense account, so believe my best action would be to disallow on the tax comp, as stated above.

Categories

Privacy Policy