As the title for this article suggests, Silverfin has an account template which can be applied to any tax sensitive expenses nominal code. There is a corresponding 'Summary of disallowed expenses' for you to see a summary of this!
1. How to use the Account template:
If you're unsure how to apply an account template, read this article.
Step 1: Enter the relevant details of the expenditure from the underlying bookkeeping system into the template
You can easily do this by importing the ledger information directly into the account template. For help on how to do this, read this article.
Using a Xero TB only sync? Don't worry! You can also upload an Excel extract of the relevant nominal code to get that all-important ledger information into Silverfin!
Step 2: Review the transaction line items and determine whether they are disallowed or not
Note: Not all expenses on this account template need to be disallowed. The disallowed template simply gives you the option to mark the relevant line items are disallowed.
Step 3: Select the relevant 'Disallowed category'
Step 4: Overwrite the Disallowed value, if relevant
The whole value of the line item does not necessarily need to be disallowed. When you select a line item as disallowed, the 'Disallowed value' will automatically populate to reflect the whole value of the line item (i.e. the 'Value' column). However, this can be overwritten in the 'Disallowed value' column.
The input in the template will populate the 'account summary of disallowed expenses' at the top of the template which will allow you to see exactly which expenses were disallowed. This is used in conjunction with corporation tax to easily define your disallowed expenses.
2. 'Summary of disallowed expenses' template
The 'Summary of disallowed expenses' reconciliation is easily reached by clicking the link at the top of the page.
This template shows the disallowed expenses per nominal code (i.e. the nominal codes which the 'disallowed expenses' account template has been assigned to) as well as a summary per the disallowed expense categories.
The depreciation will be automatically disallowed in full, whilst the other categories will be disallowed according to the 'disallowed value(s)' entered into the underlying account templates.