Incorporation expenses

Hi All,

First time setting up a company and new to accounting.

My question is: how can i record the incorporation expense I paid to the formation agency in the books?

I will really appreciate if you could help me with this=)


You can usually log this as “Professional Fees (7603)”.

Disclaimer: I’m not an accountant

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Thanks Glenn! :smile:

Would this be the same account if you just paid the £12 directly to Companies House and not to a formation company.

Incorporation fee is not an allowable expense sorry.

By its very nature, the fee must be paid before a company has been incorporated and so as such. It is not a business expense, because the business did not yet exist when it was paid.

And so if it was paid from your personal account, its a personal expense.

Or. If you wished. You could treat it as a capital expenditure, but there’s no tax relief on that either.

Hey Paul,

I know there is no tax relief, so where (expense type) would it be tagged to be a capital expense?


Capital expenditure most likely.