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QDOS TLC35 insurance not an allowable expense for corporation tax?

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    QDOS TLC35 insurance not an allowable expense for corporation tax?

    Accountant is doing accounts and saying this is not allowable as an expense and therefor cannot be used for corporation tax deduction.

    I have this insurance for at least 6 years and it was never a problem. Anyone can confirm this is or is not allowed?

    #2
    Originally posted by Eirikur View Post
    Accountant is doing accounts and saying this is not allowable as an expense and therefor cannot be used for corporation tax deduction.

    I have this insurance for at least 6 years and it was never a problem. Anyone can confirm this is or is not allowed?
    sounds like your accountant is an idiot (or just not very good).
    It's business insurance. You cannot buy it personally.
    See You Next Tuesday

    Comment


      #3
      He may be getting confused. IPSE membership is not offsettable (?) against CT becuase for that to happen IPSE would have to register all its members with HMRC (there's a long legal history behind that going back to the union movement in 1901...) which the members weren't too keen on. Can't imagine why...

      However unlike IPSE, QDOS is a purely commercial organisation, so I can't see that the same restriction would apply. It is just another fully justifiable business expense.
      Blog? What blog...?

      Comment


        #4
        Originally posted by malvolio View Post
        He may be getting confused. IPSE membership is not offsettable (?) against CT becuase for that to happen IPSE would have to register all its members with HMRC (there's a long legal history behind that going back to the union movement in 1901...) which the members weren't too keen on. Can't imagine why...

        However unlike IPSE, QDOS is a purely commercial organisation, so I can't see that the same restriction would apply. It is just another fully justifiable business expense.
        However, a large proportion of the IPSE membership fee is the cost of insurances. It could be argued that the only part of IPSE membership which is not allowable is the part which funds IPSE. The insurances should be allowable. Clearly it is difficult to separate these parts.

        Comment


          #5
          Originally posted by JohntheBike View Post
          However, a large proportion of the IPSE membership fee is the cost of insurances. It could be argued that the only part of IPSE membership which is not allowable is the part which funds IPSE. The insurances should be allowable. Clearly it is difficult to separate these parts.
          Man you are talking some absolute rubbish at the moment. You aren't buying insurance from IPSE, you are paying for membership and the cover is a benefit so it can't be argued at all.

          IPSE wouldn't release the membership so it stays a closed membership so not allowed by HMRC. It's as simple as that and has been that way forever.

          Wish sometimes you'd just shut up and stop throwing confusion and all the other rubbish that comes with every one of your posts at the moment.
          Last edited by Contractor UK; 27 June 2020, 11:03.
          'CUK forum personality of 2011 - Winner - Yes really!!!!

          Comment


            #6
            Originally posted by JohntheBike View Post
            However, a large proportion of the IPSE membership fee is the cost of insurances. It could be argued that the only part of IPSE membership which is not allowable is the part which funds IPSE. The insurances should be allowable. Clearly it is difficult to separate these parts.
            Nonsense.

            It's better to keep quiet and be thought a fool than to speak up and prove it.
            Blog? What blog...?

            Comment


              #7
              Accountant has come back with this as to why it is not an allowable expense:
              BIM46452 - Business Income Manual - HMRC internal manual - GOV.UK

              I have asked QDOS to comment as well

              Comment


                #8
                QDOS's own guidance agrees with your accountant. See here.

                Comment


                  #9
                  Very interesting. Makes sense when you read those two links... Odd I've had three accountants and none of them mentioned this is in 11 years.

                  That said I buy PI/PL as part of the package and out it through under that
                  'CUK forum personality of 2011 - Winner - Yes really!!!!

                  Comment


                    #10
                    Originally posted by northernladuk View Post
                    Very interesting. Makes sense when you read those two links... Odd I've had three accountants and none of them mentioned this is in 11 years.

                    That said I buy PI/PL as part of the package and out it through under that
                    Yeah, and I'm reasonably confident that with hindsight we've had some accounts/CT returns that have gone via us, with TLC35 claims in, that haven't been disallowed. Generally the sums aren't too big, and if the client chucks it on FreeAgent to "Insurance" with some vague (but not dishonest) explanation like "business insurance", we typically wouldn't query it (or as NLUK suggests, it's part of a bigger package, most of which is PI/PL which certainly are ok).

                    Plus as others have demonstrated above, there's some fairly logical arguments that might suggest it was allowable. So doesn't surprise me quite a few contractors will have claimed this in good faith and had no issues.

                    Comment

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