Question asked by Lindsay Steer 10 years ago
I'm try to allocate a payment for a paye tax penalty. I'm trying to post it to a new account. When it asks for an "account type" I'm unsure what to put it as. I'd like to have it as Tax Expense, but it won't seem to allow this. Any suggestions, please?
I'd create a new account code called 'fines and penalties' which can be used for this and any other similar reason throughout the year.
Although the penalty can indeed go through the accounts, it needs adding back as part of your tax computation come year-end i.e. fines/penalties aren't generally tax deductible. Therefore, creating a new code for this specific purpose will make the payment more visible on the P&L and easier for your accountant to pick up on when the time comes.
Best answerHello Lindsey,
You can try and put it under Legal Feels or Accounting Fees account codes.
IF you want, you can make your own account code specific for this purpose. This can be done going to Settings > Codes > Create. The name will be HMRC Fees and the account type will be Admin Expenses or Salaries depending on where you want it to show up on your Profit and Loss.
Vanish.
I'd create a new account code called 'fines and penalties' which can be used for this and any other similar reason throughout the year.
Although the penalty can indeed go through the accounts, it needs adding back as part of your tax computation come year-end i.e. fines/penalties aren't generally tax deductible. Therefore, creating a new code for this specific purpose will make the payment more visible on the P&L and easier for your accountant to pick up on when the time comes.
Best answerThank you, both for your helpful answers.
You must 