I'm sorry for the bombarding of questions I've not done much of this work before
I'm just about to finish a set of accounts, I have the profit & loss and balance sheet.
On my printed copies from my software I want to take out the depreciation for the tax return, which is fine I've done that BUT what adjustment do I have to make to the balance sheet to make the net profit in the capital account part the same as the profit & loss so it's the same figure on both P&L and B/S.
I know that VT prints off P&L and B/S in tax return format but I have a few things muddled up in the accounts so I can't use this function (I don't have the time to sort it out right now)
I can't take it out of the NBV of the assets can I?
You don't touch the financial statements for the tax raturn. There are no physical adjustments to the P&L or B/S
To calcaulate tax you manually deduct the depreciation before calculating capital allowances.
That is all outside of your financial statements.
Its just the figures that you report to HMRC via the tax returns where figures need to be adjusted on the returns, not in the financial statements.
If you think about it, for an incorporated entity you file the same accounts with companies house that you file with HMRC (well, except co. hse generally get the abreviated version of the same accounts where HMRC get the full thing).
HTH,
Shaun.
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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.
I've not done much of this work before
