Tax computation query

Hi,

Thank you for raising this — you're absolutely right. Client entertaining and fines/penalties are indeed disallowable expenses for corporation tax purposes and should be added back in the tax computation, just like depreciation.

Currently, the tax computation in WeFile automatically handles the depreciation add-back and capital allowances deduction. We're aware that additional common disallowable items — such as client entertaining, fines and penalties, and other non-deductible expenses — need to be incorporated into the adjusted profit calculation.

We're actively working on expanding the tax adjustments section to support these additional add-backs separately, so users will be able to include items like:

• Client entertaining (add back)

• Fines and penalties (add back)

• Any other disallowable expenses

This will ensure the adjusted taxable profit figure accurately reflects all necessary corporation tax adjustments. However, we're also pleased to let you know that we've now implemented a Disallowable Expenses field in WeFile. You can enter all your disallowable items — such as client entertaining, fines and penalties, and any other non-deductible expenses — directly in the Profit & Loss section of your filing until we expand the tax adjustments section. The amount is automatically added back to your trading profit in the tax computation, ensuring the adjusted taxable profit figure accurately reflects all necessary corporation tax adjustments.