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Companies House Filing Penalties

Do members consider that penalties incurred for the late filing of accounts are deductible for tax purposes?


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Why should they be allowable?

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If you have access to it

look at an article in Taxation in March of this year called "Nature of a Fine" by Iain Macleod. It discusses the difference between something intended to be a punitive penalty (as in the Alexander von Glehn case, which decided the original principle that penalties were not allowable) and something which has become in some cases a day to day cost of doing business - such as a parking infringement penalty.

I am not sure which side of the line the penalties in this post might fall but if the poster would like to debate the issue with HMRC this article is a useful starting point.


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Nature of a Fine

That article distinguished between parking fines, dealt with through the legal process, and civil, local autority-managed, charges.

In this case, failure to deliver accounts on time is a breach of primary legislation. That is an unlawful act and so my belief is that the penalties are not deductible.



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