Have Tax Questions? Ask a Tax Expert for Answers ASAP
Yes that is useful.
So just to confirm from a CT perspective, it would be okay to leave in my accounts, as the subsidiary doesn't have the funds to repay me. As if it was to be a debtor and i wrote it off as a bad debt, this is not recognised from a CT perspective as far as I'm aware. is that correct?
sorry last point and i will rate you.
I'm closing down my company so need to either expense it or write it off.
leaving as an expense lowers the corporation tax as calling it a creditor and writing off is not recognised for CT purposes as far as i thought, thus better as an expense.
Following on from the email thread regarding subsidiaries.
My company had a subsidiary, (75% stake). This sub went into insolvent liquidation last year.
The subsidiary was not in exactly the same business but there was cross over between the companies in terms of staff and money spent on marketing for the 2 companies.
my company paid some invoices on behalf of the subsidiary at the start of the subsidiaries trading.
Nothing was ever signed but this was supposed a loan.
Looking back now some of the invoices are in my companies name but i can't remember if they are related to my company or the subsidiary or a bit of both.
Can I include these as expenses in my company for CT purposes?
Again it lowers my CT if i do include as an expense as a written off loan cannot be recognised for CT purposes.
Yes James, but remember that as a Director any invoice must have your company's name on it as well as your own.
Thank you for your support.
no invoice has my personal name on it as a director, only the company name and trading address.
why is the director name needed?
I've never heard of that before.
so also to confirm, i can put through these invoices through my company as expenses?