This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Accounting for Back Taxes & Related Penalties

ochmoni
Posts:6
Joined:Fri Nov 23, 2012 8:06 am
Accounting for Back Taxes & Related Penalties

Postby ochmoni » Tue Apr 16, 2019 6:18 pm

Please can anyone guide me on the accounting treatment for back taxes identified after an Audit. Below is an illustration for clarity

HMRC Audited the company & identified taxes & penalties related to periods 2015 (GBP 10,000), 2016 (GBP 20,000) & 2017 (GBP 30,000)
The audit was completed & additional assessments were issued in financial year 2017/2018.
All the Taxes were paid in the financial year 2017/2018.

How should one account for these back taxes & is there any way they can be tax deductible for the financial year 2017/2018.

Return to “Business Tax”