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Does FreeAgent allow for Non-CT Taxable Expenses?
Does FreeAgent allow for Non-Taxable Expenses?
Some expenses, such as motoring costs / accommodation are bona fide costs that can be offset against revenue, but because they fall within the "24 month" rule, they cannot be used to reduce Corporation Tax. How does FreeAgent deal with these types of expenses? When preparing the Annual Accounts can FreeAgent distinguish from taxable and non-taxable accounts for CT purposes?
Thanks
Some expenses, such as motoring costs / accommodation are bona fide costs that can be offset against revenue, but because they fall within the "24 month" rule, they cannot be used to reduce Corporation Tax. How does FreeAgent deal with these types of expenses? When preparing the Annual Accounts can FreeAgent distinguish from taxable and non-taxable accounts for CT purposes?
Thanks
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Inappropriate?Kane,
Sorry, not really yet. We know that Business Entertaining is disallowable and we treat that accordingly, but that's all.
I'm thinking we should add a generic 'tax-disallowable expense' category for this kind of thing. Would that suffice? -
Inappropriate?A tax-disallowable category is an easy-to-implement compromise, which shouldn't confuse my accountant :-)
I can't expect accounting software to be able to flex to the whim and idiosyncrasies of tax laws, so maybe my expectations are a bit too high!
How soon could you implement your suggestion Ed?
I’m confident
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Inappropriate?A tax-disallowable category is an easy-to-implement compromise, which shouldn't confuse my accountant :-)
I can't expect accounting software to be able to flex to the whim and idiosyncrasies of tax laws, so maybe my expectations are a bit too high!
How soon could you implement your suggestion Ed?
I’m confident
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Inappropriate?I'm puzzled Kane. Why not let your accountant sort this out for you when he completes the corporation tax return? If you want to help him why not make a note in the description that it is disallowable?1 Comment
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This answers the question
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You are right to expect the accountant to work it out, but my accountants prepare my accounts, usually a hairs breadth away from the submission deadline. I need to know on a monthly basis my true p&l and tax liability. Unfortunately I cannot rely on my accountant (or I dont wish to pay them) for this information on a monthly basis. -
Inappropriate?Is there any progress on this? I've still got my PCG membership sitting under "Business Entertaining" to discount it from the corporation tax calculation but it would nice to move it into the correct category.
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