Hi all,
First off, I am a huge fan of Taxfiler. The tax return software is second to none, in my opinion. The accounts prep software is also excellent, but it will be much better when they allow you to edit / add account codes.
I have a slight concern. A client operates a franchise. Last year's accounts, quite rightly in my opinion, have headings in the detailed P&L for 'franchise fees' and a couple of other, specific overhead headings.
With Taxfiler at present, I will have to put the 30K franchise fees to either other legal & prof or management fees.
My concern is that this will flag up a warning at HMRC along the lines of 'we need to look into these 30K legal fees' etc.
I have always been one for over disclosing and when I used to use VT, I would be quite specific in my use of account headings, however our VT license has expired and up until now, we have not had a problem with TF.
I certainly don't want to increase clients' risk of enquiry unnecessarily. I am aware that Taxfiler are planning to address this in the future at some point, but can other Taxfiler users provide any answers?
I know I could put a note in the white space, but this is not ideal, is it?
Replies (5)
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I don't think it matters a jot what text is in the description - it is the tagging that HMRC checks will focus on. What would you have tagged franchise fees as in the past? I don't think there is a specific tag for it in the DPL tagging list so you presumably just used a general tag? If so, just allocate to a similar general account in Taxfiler.
It seems likely that the software just tagged them as sundry expenses then, so add them into the sundry expenses overhead in Taxfiler and you'll have the same result. Like I say, it's the tags that matter to HMRC, not the text.