I have been using VT+ to do my own partnership accounts, no problem.
I have done year end and so on and all the SA, however i have now done the SA course and understand what i should of been doing. I am in the process of amending the SA as i did them wrong.
My question is i need to adjust the profit & loss for tax purposes, which will change the figures and make our loss not as big. I am then going to claim AIA and WDA for the tax year how do i show this VT+?
Or do i leave it as it is and have separate working sheets for the tax calculation?
I have no partnerships as I don't believe in them as a viable business model.
However, on the embedded question about the annual investment allowance.
AIA is a tax concept not an accounting one. There is no facility within VT Transaction+ to do tax. Rather it is expected that you will either export the VT data to a compatible tax package (I believe (though not tried it myself) that BTC works well with VT+).
In VT Accounts (the bigger bit of software from VT) there is no tax facility for the self employed or partnerships but it does however do the tax computations to append to the tax return (including conversion to iXBRL format) for limited companies.
Back to your question. In VT (indeed in any accounts software) you do not ever adjust the profit/loss for tax as that is the accounting profit.
Only in the tax return would you remove depreciation from expenses so increases profit or reducing loss (and then you apply your capital allowances).
In VT for self employed and partnerships capital allowances are not reflected at all even in the accounts, that is something that only happenes for incorporated entities.
HTH,
Shaun.
p.s. To fill in some of the gaps in your knowledgebase from your ICB studies try the latest version (you have to buy the same book every year) of "Taxation" by Alan Melville. Yes it's £40 a year but worth every penny (and very cheap compared to most tax books!).
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
