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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4882
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Where do I account tax penalties on the CT600 ?

Resolved Question:

where do I account for late tax penalties on the CT600 ?
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Hello and welcome to the site. Thank you for your question.

Please advise where you have accounted for these within the expenses page of Accounts section.

Advise if the penalties are all penalties for late filing or is there an interest element as well.

Many thanks
Customer: replied 1 year ago.

Hi... I haven't accounted for them anywhere yet! I didn't know whether they are regarded as expenses or costs. The penalty totals 200.00 and interest 25.76.

Regards

Simon

Expert:  taxadvisor.uk replied 1 year ago.
Simon, thank you for your reply and for additional information.


Penalties levied for late filing of corporation tax returns are not tax allowable, I'm afraid.
More information on this can be found here

http://www.hmrc.gov.uk/manuals/bimmanual/bim42515.htm

http://www.hmrc.gov.uk/manuals/bimmanual/BIM42520.htm


Interest charged on late or underpaid corporation tax is deductible against profits for corporation tax purposes.
https://www.gov.uk/corporation-tax-interest-charges

As far as accounting for them is concerned, you should show £200 as administrative expenses (Box AC20) and £25.76 as interest payable and similar charges (Box AC30) on your profit and loss account within Accounts section of CT600 Return.

When you get to Computations Section of CT600 Return… on the adjustments page

Penalties are added back under Penalties and fines (Box CP52).

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 1 year ago.

Once again I am having difficulties getting the balance sheet to tally with the p&l. Do I add depreciation of fixed asset (a PC) into admin expenses on the P&L.

Thanks

Simon

Expert:  taxadvisor.uk replied 1 year ago.
Simon, thank you for your reply.

Depreciation is a charge in the profit and loss account and you should include it within administrative expenses (Box AC20) and also show it as separately under expenses (Box CP28) when you get to Computations section of CT600 Return.

I hope this is helpful and answers your question.
Customer: replied 1 year ago.

Thank-you. I have one last point to clarify before I probably need to buy another answer! I am filling out the notes for Tangible assets. These comprise a PC bought for 2693, being depreciated at 1/3 over 3 years. I have already accounted for 898 depreciation last year (Y1) This year (Year 2, the asset is charged again at £898, the final Y3 charge will be £897. I am not sure what entries to make for this section. I attach a screenshot.

Expert:  taxadvisor.uk replied 1 year ago.
Simon, thank you for your reply.

Your entries should be
AC124 = 2,693
AC127 = 2,693
AC128 = 898
AC129 = 898
AC131 = 1,796
AC132 (2,693-1,796) = 897
AC133 (2,693-898) = 1,795

You will agree I have gone beyond answering your initial question. I am happy to help you with the rest of CT600 return as additional service and send you my offer for your consideration.

I hope this is helpful and answers your question.
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4882
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
taxadvisor.uk and other Tax Specialists are ready to help you
Customer: replied 1 year ago.

Hi! I have accepted your offer and made payment. I'm just going through the Accounts/Notes section. If i get stuck I will be back! Many thanks

Simon

Expert:  taxadvisor.uk replied 1 year ago.
I thank you for accepting my offer and answer.
Please let me know if you have further questions.

Best wishes.
Customer: replied 1 year ago.

Hi...more of a general question. Y1 tax for this business was year ending 31 Oct 2013. Tax owing was 1532.40. Due date for payment was 4th July 14. 1532.40. I was late making the tax return so this was paid in Jan 15, and a late penalty and interest was applied. I am now making the return for year ending 31 Oct 2014. because the payment itself for Y1 was actually made OUTSIDE the time frame of Y2 should I treat the cash flow as being part of 2014/2015?

Expert:  taxadvisor.uk replied 1 year ago.
Simon, any tax outstanding at 31 Oct 2014 should be shown as creditor (this would include tax provision for CT on profits for the year ended 31 Oct 2014).

I hope this is helpful.
Customer: replied 1 year ago.

Morning! I am just submitting now. In AC198A do I submit today's date as Approval date, as it is a late submission, or should I approve them as of the reporting date, 31 OCT 2014 ?

Expert:  taxadvisor.uk replied 1 year ago.
Simon, thank you for your reply.

Please use the date the accounts were approved.

Best wishes.
Customer: replied 1 year ago.

Thank you. I delivered my returns and computations (hopefully) successfully, with your help.

Expert:  taxadvisor.uk replied 1 year ago.
Simon, thank you for your reply.

I am pleased for you.
Customer: replied 1 year ago.

Hi...I have a new and v basic question for you re. submitting accounts. For the company concerned, last year an operating loss was returned of £1780. In the Profit and Loss account for THIS period, can I make a provision for this? The current profit is showing as £2707.

I need to pay you for this. How do I do that?

Thanks

Simon

Expert:  taxadvisor.uk replied 1 year ago.
Simon, thank you for your question.

This is a new question and I suggest you submit it as a fresh question and request that I answer it in the body of the question.

This question is now closed and I don't think you would be able to make payment on this one.. please check with Just Answer if it is possible?

Hopefully, other tax experts will leave it for me to respond.

Many thanks
Customer: replied 1 year ago.

I am directed to another advisor when I try to ask a new question. Is there a shortcut to you?

Simon

Expert:  taxadvisor.uk replied 1 year ago.
Simon, thank you for your reply.

I am led to understand you can also request Just Answer to direct the question to me.

Many thanks

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