Online Filing Incentive - Declare?

System
System Posts: 100,534 🤖 Admin 🤖
edited 12:08PM in AAT member discussion
My client received a refund of £250 for online filing of PAYE - do I have to show this in the accounts somewhere?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Online Filing Incentive - Declare?

    It is normally shown within sundry income.

    Regards
    Steve
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Online Filing Incentive - Declare?

    Many thanks - will do!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Online Filing Incentive - Declare?

    HMRC says this.....

    Accounting for the tax-free paymentsShow the tax-free payments in your accounts as 'other operating income'. The payments are not taxable, so your tax computations should show profit reduced by the payments included in your accounts. You do not have to pay VAT on your tax-free payments for early online filing, nor do you have to show them on your Return of business profits/losses.

    edwina
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Online Filing Incentive - Declare?

    I show it on the accounts as exactly what it is - and then remove it for tax return purposes. When it all first started I spent hours on the phone to the Revenue where I removed the opposing £250 from to make everything balance, and no-one could tell me, so I just take it off drawings.

    Claudia
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Online Filing Incentive - Declare?

    Other operating income for a company, anywhere you like for an unincorporated business.

    Not sure why you had to remove it to drawings on the tax return. Just add it back in box 3.71.

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Online Filing Incentive - Declare?

    Many thanks for all the advice. Amazing how such a small amount can cause some much confusion.

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