Hi, how would you treat late filing & interest penalties in company accounts,ie would you put in P&L and add back in tax comp.
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Yes and no
Late filing penalties - yes
Interest for late payment of tax - no (the rule changed several years ago)
I am intrigued
If you are not going to put them on the P&L where would you put them?
PS Peter is right only penalties should be added back.
Interest re late payment of tax
I believe that it is only interest on late payment of CT that is deductible, if it relates to PAYE/NIC (including any arising on BPSS deferrals) then it is not.
"if it relates to PAYE/NIC
"if it relates to PAYE/NIC (including any arising on BPSS deferrals) then it is not."
There isn't any interest - it's a penalty.
So how come
I have 2 DNP1's that arrived in the post today in respect of underpaid PAYE that both show "interest to date"?
Claim all interest?
Sorry, I was thinking about the penalties that have recently been introduced.
Why can't you claim the interest on late PAYE and NIC?
It is not allowed by law
http://www.hmrc.gov.uk/manuals/bimmanual/BIM45740.htm
Updated reference: ITEPA 2003 s684 (4)