Hi all,
On the new QuickFile Report for the Tax Summary (Thanks chaps, really useful!), the Nominal Code 7603 - Professional Fees appears as an “Add back”, ie: that it is not allowable against Corp Tax. In the description for the category it tells you to put in there such fees as Companies House filing fees etc which I think are and should be Tax deductible so is it a mistake in the report or have I used 7603 incorrectly in my expenses?
Thanks in advance,
Nick
Let me check with an accountant here to see what the situation is. I’m sure it will come down to “it depends”, so we may need to revisit the description. To my knowledge Professional fees usually cover legal expenses which are largely (with exception - as always) non-tax deductible.
Annual Return filing fees are allowable and generally an Annual Return fee would go under Professional Fees. The tax summary page is some way off a professional tax calc. and really only an approximation. It’s difficult to accommodate all scenarios so we made the add backs configurable, you could therefore create a separate nominal code (Professional Fees - Allowable) and post the allowable items there.
Thanks Glenn, I’ll move the filing fees to a different Nominal Code then. It would make sense to change the description there then and maybe mention it is non-deductible.
Just going to move the CH expenditure to an alternate code and I noticed that there was 7600 - Legal Fees which surely fits more into the non-deductible types rather than 7603? Also when I spoke to my accountant he stated he would put payroll fees and various 3rd party fees into 7603 along with CH fees which are all deductible.
Many of these codes originate from accounting applications that have been around for years and have become fairly standard over time, although there’s no official right or wrong way of doing these things. I did a quick search on Annual Return fees yesterday and others have suggested Sundry Expenses. As long as the system you use is consistently applied it should be fine.
Cheers for the info! 