When you prepare accounts and tax return for s/t, there are two elements: accounts (allowable) and tax return (disallowable). As I see it, there are two options:
- Invoice the two elements separately
- Add back a private proportion
I would prefer the addback, so that the creditor and the P&L charge is how much I will charge, and also reduces the paperwork (1 invoice instead of two). However, I don't know how cast iron this would be. I was planning on allocating £30 for returns. I guess VAT may also be an issue.
Any thoughts?
nick goddard
Replies (1)
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Usually allowable
If the preparation of the tax return is incidental to the a/cs (meaning there's not much else in the TR apart from the S/E pages), then long standing Revenue practice is to allow the full cost.
Not sure what the VAT position is technically, but in practice I doubt many accountants tell their clients to disallow any percentage of the VAT.