£50 VAT Repayment Supplement on Annual Accounts

[Carl Sberg]

Thanks Clare. I'm happy with putting it into the computations. I wasn't sure if it needed identifying in the accounts proper. Thanks.

[Clare@InTouch]

Hi Carl,

Just add it in as other income, and then take it back out in your tax computation. So your tax comp would be along the lines of:

Profit 10,000
Depreciation 500
Other income (50)

Taxable 10,450

CT at 21 % thereon £2,194.50

[Carl Sberg]

Evening all. HMRC have honoured Ltd Co. with a "VAT repayment supplement" of £50 because they were late repaying some VAT. This isn't interest and isn't subject to corporation tax. However, I'm having trouble with how it's best represented on the annual accounts. Has anyone dealt with this in the past? Cheers! Carl.