What is a subscription?

[ladymuck]

Currently having an argument with my accountant (or, more accurately, what feels like an over enthusiastic trainee) about subscriptions.

I say the annual fee to ICO and Companies House is not a subscription. They say it is.

They say the annual fee for a registered office service is NOT a subscription, which I agree with but I don't understand why they think that is different.

What say the learned people of the internet?

[jamesbrown]

Weird argument

Most modern accounting software should have a separate category for the CH Annual Confirmation Statement, at least.

Can't see how it's a subscription, though.

[Andy2022]

My accountants told me to classify them under Legal and Professional Fees

Subscription implies some thing is voluntary whereas the ICO and CH fees aren't

[ladymuck]

That's the point I'm trying to make.

I just chucked them in General Expenses as I didn't really see it as a legal fee either. Xero doesn't have a dedicated account for CH Annual Confirmation.

Occasionally my accountant gets a trainee in and they like to go through account transactions and recode stuff. I think it makes them feel like they're adding value. I get why he chooses my books for the trainees to look at as there's nothing very challenging to have to deal with.

[northernladuk]

What say the learned people of the internet?

I say ask for their supervisor and get hold of a proper accountant and then ask them

[jamesbrown]

Xero doesn't have a dedicated account for CH Annual Confirmation.

I’d probably go ahead and add one, then. I have a bunch like that, either to keep things organised or because they have special tax treatment, such as the IPSE sub.

[northernladuk]

I’d probably go ahead and add one, then. I have a bunch like that, either to keep things organised or because they have special tax treatment, such as the IPSE sub.

You mean special tax treatment as in it's not deductible from your profits for corp tax?

[jamesbrown]

You mean special tax treatment as in it's not deductible from your profits for corp tax?

Yep.

[Craig@Clarity]

ICO to Legal and professional fees.
CH confirmation statement fee to Sundries/General Expenses which is added back as not CT deductible.
National Geographic magazine, FT etc = Subscriptions
Freeagent/Xero etc = Subscriptions
Registered Office Service = Can be argued as subscriptions or professional fees. It's down to dealer's choice. At the end of the day, you sign off the accounts so if you want it under prof. fees, get them to put it under that.

[ladymuck]

ICO to Legal and professional fees.
CH confirmation statement fee to Sundries/General Expenses which is added back as not CT deductible.
National Geographic magazine, FT etc = Subscriptions
Freeagent/Xero etc = Subscriptions
Registered Office Service = Can be argued as subscriptions or professional fees. It's down to dealer's choice. At the end of the day, you sign off the accounts so if you want it under prof. fees, get them to put it under that.

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.