I don't use the HM Revenue & Customs software but profit on disposal would normally be included in the administrative expenses figure (AC20) in the profit and loss account. When you get onto the computations section, you'll see that the detailed breakdown of general administrative expenses includes box CP33, which is 'profit/loss on disposals of assets'. The profit on disposal is then later deducted from the tax computation in box CP57.
I'm looking at a template that I downloaded a while ago but hopefully the boxes haven't changed since then.
-- Edited by Robert Pearce on Thursday 22nd of November 2012 10:51:21 AM
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Pearce & Co - Chartered Accountant and Chartered Tax Adviser
Hi - I am trying to determine where to put profit on sale of fixed assets in the CT600. In the profit and loss account there is a box entitled 'other operating income' (AC22) which is where I would assume it went. However, the help for this box states that profit from the sale of fixed assets should NOT be included here as it will be recorded elsewhere. I didn't put it in there and completed my profit and loss account which gave me a different balance than shown on my profit and loss account (the difference being the profit on sale of assets that I hadn't included) and continued completing all other sheets, and lo and behold, when I got to the end I was given an error in box AC187 which is the retained profits figure in the accounts as this didn't agree with my retained figure in the balance sheet (well, it wouldn't as that was the figure inclusive of profit on sale of fixed assets)
Has anyone else encountered this problem - I would appreciate any help - I first contacted HMRC in May about this and to date have not got an answer!
Hi Robert - so you are suggesting that I reduce my administrative expenses by the amount of profit earned on fixed assets. That would definitely get my profit and loss account to balance I agree. I will try that and hopefully won't get any more error messages. Many thanks for your help
