Late Payment Penalties / Self Assessment / Corporation Tax

Hello Schnurdle

I copied the below from our fAQ page. I'm not sure if this help and if not please let me know and I will see if I can get a definitive answer.

Best regards

David

From the FAQ page:

How do I record late payment interest and compensation in my accounting records for tax purposes?

Late payment interest and compensation are chargeable as 'interest received' (for the late payment interest) and 'other income' (for the compensation received) within the accounts.

Both the late payment interest and compensation are taxable as they are derived from extra costs which you may have incurred.

For any payments that are made, these would be recorded as interest charged within the accounts.