What is a subscription?

[hobnob]

CH fee not being CT deductible is new one to me. I wonder how my accountant has treated it in the past, considering it's always been lumped in with General Expenses and I'm only occasionally asked to provide details. However, I expect it's commonly known that the fee has to be paid each year so it's not difficult to add it back in.

Yeah, that's news to me as well!

When I was with Crunch, they added that fee to my monthly bill, so I categorised it as "Accountancy fees" but it was on a separate line because of 0% VAT.

When I moved to Maslins (FreeAgent), I paid the fee directly to Companies House myself, so I asked the accountants which category I should use. They said that it should be "Legal & Professional Fees", but it needs to be 0% VAT.

When I've checked the figures for my year-end returns, both accountants have treated that payment as CT deductible.

[jamesbrown]

My understanding is that statutory fees are outside of the scope of UK VAT (different from exempt, different from zero rated) and that is how I treat the CH ACS in FreeAgent. It shouldn't appear on your VAT return at all. However, if it's paid by your accountant on your behalf, it will depend on whether they add a profit margin, else it's a disbursement, I think. Also, it should be tax deductible and that's how I treat it, so curious to hear the reasoning behind a contrary opinion on that (FWIW )...

[ladymuck]

Having spent hours collating evidence as to why their depreciation adjustment was wrong, why their assumptions about some of the costs were wrong (literally made an assumption rather than asking for clarification), and why I disagree with their stance on subscriptions, I send all the gubbins off and get an automated response advising the person no longer works for the firm!

Swiftly forwarded to the owner for him to assign to another person...

My understanding is that statutory fees are outside of the scope of UK VAT (different from exempt, different from zero rated) and that is how I treat the CH ACS in FreeAgent. It shouldn't appear on your VAT return at all. However, if it's paid by your accountant on your behalf, it will depend on whether they add a profit margin, else it's a disbursement, I think. Also, it should be tax deductible and that's how I treat it, so curious to hear the reasoning behind a contrary opinion on that (FWIW )...

I don't do anything with the VAT for statutory fees, but tend to flag as Exempt as there's not an 'out of scope' option and 0% implies a rate has been applied which is also wrong.