I run a ltd online retail company
I file insurance claims against royal mail for deliveries that they lose and they send me compensation cheques. It totals about £500 per year. My question is where should this be accounted for in my annual accounts... Surely not in sales...
Tom
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Replies (8)
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Your accountant will worry about the annual accounts, you should post the entry where your accountant told you to post it. I assume you are not happy with his suggestion, so rather than just ask random strangers, why not talk to him or her and ask whether there is an alternative code that will make you happier.
I don't have an accountant :)
Well done. You're obviously very pleased with yourself sponging free advice.
Just bear in mind that while you are posting questions about trivialities like where to disclose a £500 refund, you are, in all likelihood, missing something important/expensive which a paid adviser would be dealing with.
Good luck when HMRC catch up with you.
Yes I'm really pleased thank you. It was a very simple question. I'm very happy to answer any questions I can for others.
You don't know anything about me, the accounts, my own experience and the way in which I get this work done. Am I going to tell you why you are wrong? No. I couldn't be bothered but all I'll say is that it is completed as it should be and correctly.
Your comment "Good luck when HMRC catch up with you.' is beyond pathetic. I've had HMRC look at my accounts before and it has all been fine.
Your choice of the word " sponging" shows your real grievance here is the fact that I'm not paying for this advice. And your boogie man comment is one I've seen a million times from consultants to legal professionals. It's called scaremongering, trying to strike fear and worry in people so that they'll pay you probably some ridiculous extortionate fee for your services no doubt. Do yourself a favour, get with the times, a life and focus on the real value you can offer people through your work rather than whining over a simple question someone asked that took about one second to answer.
Yes I'm really pleased thank you. It was a very simple question. I'm very happy to answer any questions I can for others.
You don't know anything about me, the accounts, my own experience and the way in which I get this work done. Am I going to tell you why you are wrong? No. I couldn't be bothered but all I'll say is that it is completed as it should be and correctly.
Your comment "Good luck when HMRC catch up with you.' is beyond pathetic. I've had HMRC look at my accounts before and it has all been fine.
Your choice of the word " sponging" shows your real grievance here is the fact that I'm not paying for this advice. And your boogie man comment is one I've seen a million times from consultants to legal professionals. It's called scaremongering, trying to strike fear and worry in people so that they'll pay you probably some ridiculous extortionate fee for your services no doubt. Do yourself a favour, get with the times, a life and focus on the real value you can offer people through your work rather than whining over a simple question someone asked that took about one second to answer.
No, the real grievance is the fact that this is a website 'for accountants and other finance professionals', not a website for people who do not have an accountant to ask stupid questions. There are plenty of other forums where you could ask this question, but this is not one of them.
I don't have an accountant :)
Well, you need one as you clearly don't know enough.
What else don't you know ? Do you know what you need to now but don't know ? What mistakes are you making without even realising you're making a mistake ?
Compensation cancels the expenditure you originally made.
Is it material (i.e. who cares?)
Is it definitely compensation and not a refund of costs?
Which FRS are you reporting under?
If not FRS 105, which format are you using?
Depending on the answers to the above, options include: Other income, Other charges, Other operating income, Cost of sales, virtually any heading at all which is not totally daft.
The detailed non statutory P&L may want to be more specific.