I/C payment in error

I/C payment in error

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We overpaid an I/C creditor by £5k, would this expense be tax deductible?

many thanks

 

Replies (8)

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By qwertyqwerty05
25th Oct 2016 18:00

& note the I/C entity has now been sold & we are writing off the balance. Would this be tax deductible?

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Replying to qwertyqwerty05:
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By Euan MacLennan
25th Oct 2016 18:16

Forgive me for asking, but what is an "I/C entity"?

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Replying to Euan MacLennan:
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By qwertyqwerty05
25th Oct 2016 18:56

Intercompany entity. A balance with another entity within the group umbrella

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Replying to qwertyqwerty05:
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By Accountant A
25th Oct 2016 19:11

qwertyqwerty05 wrote:

Intercompany entity. A balance with another entity within the group umbrella

Ah, I/C!

Have you tried to recover the £5,000?

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Replying to Accountant A:
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By qwertyqwerty05
26th Oct 2016 10:59

we are writing it off against the sale proceeds, the payment was an estimate. Would it deductible? thanks

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Replying to qwertyqwerty05:
By johngroganjga
26th Oct 2016 11:41

Why are you writing it off instead of recovering it?

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Replying to johngroganjga:
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By qwertyqwerty05
26th Oct 2016 15:31

managements decision - the entity/business has now been sold and the £5k amount in the scheme of things compared to the sale proceeds is very small.

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Replying to qwertyqwerty05:
Stepurhan
By stepurhan
26th Oct 2016 12:38

qwertyqwerty05 wrote:

we are writing it off against the sale proceeds, the payment was an estimate. Would it deductible? thanks

On what basis? When was the payment made? When was the company sold?

Maybe you should go back and write this query again, but put in all relevant detail this time. The less you supply, the more likely the answers you get will be wrong because some important fact is missing. Respondents shouldn't have to make informed guesses to give the answer you need.

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