Tax Investigation Costs


A

Andy

I have recently been investigated by the Inland Revenue.

They agreed my sole trader accounts were correct apart from a minor
adjustment between Capital Introduced and Drawings on my Balance Sheet. My
Taxable profits were agreed as being correct and no adjustment or penalty
was charged.

What I want to know is, can I set the £250 my accountant charged me against
my Taxable Profits or is this a disallowable expense?
 
Ad

Advertisements

D

Duke of Url

Andy said:
I have recently been investigated by the Inland Revenue.

They agreed my sole trader accounts were correct apart from a minor
adjustment between Capital Introduced and Drawings on my Balance Sheet. My
Taxable profits were agreed as being correct and no adjustment or penalty
was charged.

What I want to know is, can I set the £250 my accountant charged me against
my Taxable Profits or is this a disallowable expense?
As there has been no increase in tax, the additional fees of £250 should be
tax deductible - see Statement of Practice SP 16/91.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top