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Where Taxpayers and Advisers Meet

deposit query

smithy74
Posts:6
Joined:Tue Jan 25, 2022 9:02 pm
deposit query

Postby smithy74 » Wed May 25, 2022 1:14 am

Hi Everyone,
I just have a query..
Three years ago i took a lease on a business unit and incurred the usual initial start up fees which included a deposit.
When I did my accounts for that year, I noted these expenses as 'allowable business expenses' which included the deposit.
I have since received a partial refund of the deposit - I don't know why but I am now confused as to where this refund is deposited - business account or non business account?
I presume its the non business account but I am still not sure - can some one advise me please?
Thanks in advance,

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: deposit query

Postby pawncob » Wed May 25, 2022 9:38 am

I'm not sure what your query is. A security deposit isn't an allowable business expense, and should not have been included.
If you included it in expenses, then a refund should be credited to business expenses.
With a pinch of salt take what I say, but don't exceed your RDA

smithy74
Posts:6
Joined:Tue Jan 25, 2022 9:02 pm

Re: deposit query

Postby smithy74 » Wed May 25, 2022 4:24 pm

Hi, thanks for your reply. I will do what you've said and put the refund of my deposit back into my business account. However I only received a partial refund.
Thanks again for your time and help.

smithy74
Posts:6
Joined:Tue Jan 25, 2022 9:02 pm

Re: deposit query

Postby smithy74 » Wed May 25, 2022 4:51 pm

Or, do I just put this into my non business account and credit my business expenses by the amount i received back? Thanks.


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