Tax relief

[Maf. King]

On Wednesday 09 Feb 2005 10:13, Tom Haskins-Vaughan wrote:
> I have a pension fund that I pay into. I pay 78.00 but get tax relief at
> basic rate (22%) so actually 100.00 is deposited into my pension fund.
>
> My question is: is this tax relief an expense or an income?
>
> i.e. Expenses:Tax:Income Tax     -22.00
> or Income:Tax Relief                     22.00
>
> Cheers for any help.
>
> Tom

Hi Tom,

I've always thought of it as a "negative expense" - you incur some expense 
(which may become a liability) of tax, and then the government gives you some 
back.

In my mind, it is no different to e.g. buying a shirt and finding that it 
doesn't fit properly when you get home, so you take it back and get a refund.  
that is "negative expense", not income.

But then again, IANAA!

Maf.