companies house fine

lor

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.

T.C.

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

I was thinking that it wasn't allowable.... thanks T.C. unless other's say otherwise...

lor

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

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.

Good answer! Totally agree.

lor

thank you both of you! - glad I asked now!

paulstafford

why do you need to reverse the bank transaction if payment has been made? just disallow the payment in the tax comp.

lor

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.