Do I have to pay corporation tax and/or VAT on fees award by CCJ?

[northernladuk]

But running your company for you for free is not what we're here for...

But our advice is worth every penny he pays for it

[oneshot]

OK, so you have one client, hence one transaction a month, and the company has won a CCJ on late payments - presumably by your single client. And you're still trading with them?

Anyway, you don't routinely need an accountant - well that's your call of course - but any half decent one would give you 10 minutes free advice on a fairly technical one-off question. There's a few on here, try one of them.

But running your company for you for free is not what we're here for...

I have only had one client at a time and when they stopped paying me I found a new one and got CCJ against the old one. Where might I find one of these few accountants you speak of? This is my first day here and it doesn't seem very welcoming.

[northernladuk]

I have only had one client at a time and when they stopped paying me I found a new one and got CCJ against the old one. Where might I find one of these few accountants you speak of? This is my first day here and it doesn't seem very welcoming.

Maslins is one. He posted pretty early in the thread. He's always happy for people to ring him and he'll give you 30 mins free. He's nice like that but don't expect him to buy you a drink, he's not that nice.

[WTFH]

Why would I pay tax on expenses incurred due to winning them back in court?

OK, you pay CT on your profits.
When you paid for the fees it came out of your profits, so you reduced your CT, because you had less profit.
Now you’ve got that money back, you can pay the CT that you would have paid, if you’d not had to pay the fees

You’re not paying extra tax, you’re paying the tax that you offset.

(I am not an accountant, so this could be completely wrong. You have to look at the overall picture, not just a single transaction)

[Lance]

Why would I pay tax on expenses incurred due to winning them back in court?

This isn't hard........
You pay an expense.... That reduces your profit and therefore your tax.
You are reimbursed that expense, that replaces the lost profit and you have tax to pay on that.

If you are awarded more money by the court than you incurred (compensation etc.) that is more profit on which you pay tax.

If you raise an invoice then VAT MUST be added as to not do so would be illegal. If you raise an invoice for the expense that is the same, immaterial of whether VAT was paid by your company on the fees.
The only way that a non-VAT item can be passed to a client without adding VAT is if it's a disbursement. For that you'll need an accountant to tell you. if it is but I seriously doubt it's a disbursement as there are clear rules on those and a CCJ doesn't fit them.