Incorporation expenses

Accounting
1

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=)

Cheers,
Al

2

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

Disclaimer: I’m not an accountant

1 Like
3

Thanks Glenn! :smile:

4

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

5

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.

6

Hey Paul,

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

Thanks.

7

Capital expenditure most likely.