We've taken on a new client, and looking at the previous set of annual accounts prepared for the company, the amount due for Corporation Tax for that year was not included. We we usually include the amount calculated when forming accounts, so for this year for this company we would include Corporation Tax due for the previous year, and for the year we're forming accounts for now, to bring up to date.
Including two lots of Tax in this years accounts will however bump up Expenditure and impact profits which the client will not be expecting.
In this case, I'm considering continuing along the same vane as the previous accountant, and including only costs actually paid during the year.
Any comment / advice appreciated.