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Loan Payments - How to show in accounts

Discussion in 'Accounts & Finance' started by mattye, Jun 12, 2012.

  1. mattye

    mattye UKBF Contributor Free Member

    Posts: 40 Likes: 0
    Hi All,

    A question regarding the above.

    Am running Ltd Co with loan for equipment. Claiming Plant & equipment allowance @ 100% first year. Showing interest in P&L as expense and adding back depreciation when calculating Corp tax.
    Where (if at all) do I show the monthly payment for the loan. If I'm already claiming the Plant & Equipment allowance I can't also show the monthly loan cost as an expense?
    Surely the monthly payment needs to show somewhere when calculating corp tax.
    Any help appreciated.
    Posted: Jun 12, 2012 By: mattye Member since: Mar 10, 2008
  2. Philip Hoyle

    Philip Hoyle UKBF Ace Free Member

    Posts: 2,213 Likes: 1,077
    The capital element of the loan repayments simply reduce the outstanding loan amount on your balance sheet. There is no effect on corporation tax and no entry on the corporation tax return.
    Posted: Jun 12, 2012 By: Philip Hoyle Member since: Apr 3, 2007
  3. teddys

    teddys UKBF Enthusiast Free Member

    Posts: 855 Likes: 198
    Capital allowance is not shown on your P&L account, but on your CT computation sheet. On your P&L you would show only interest paid and depreciation.
    Posted: Jun 12, 2012 By: teddys Member since: Apr 30, 2011