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Readers' forum : Accounts headache

19 September 2017
Issue: 4616 / Categories: Forum & Feedback

How is the APN tax paid by a company treated for accounting purposes?

I act for a close company which in February 2012 entered into an employee benefit trust (EBT) scheme.

The company made an EBT contribution where corporation tax relief had previously been claimed in the sum of £290 000.

The company has now received an accelerated payment notice (APN) for £116 000 income tax and £48 000 class 1 National Insurance.

Most of the correspondence on this matter has been dealt with by the scheme promoter. However we have been advised that it is essential that the payment of the APN is made and this is duly being dealt with.

My query relates to the treatment for accounting purposes of the tax payment under the APN. I have asked the promoters for guidance and but they have been unable to provide any.

How should the APN tax paid by the company now be treated in the company accounts?

I look...

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