Sorry. Take; taking goods for own use, items disallowed, elements of personal use and such - start with net profit after journals to reflect disallowed amounts. Or start with net profit and input disallowed items on tax return.
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
On phone so don't want huge block coming through. You see, my thoughts are; if HMRC see a return with hardly any adjustments are they to think, ay? What's going on here?
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
I process the elements of personal use via the accounts software first.
Depending on how I feel/customer/software in use I might process the use of home and such adjustments in the software before running the reports, or I might do that via ETB and then process as year end adjustments. But either way - start with the accounts, finish the accounts pre tax calculation, then do computations. If that makes sense.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Sorry. Take; taking goods for own use, items disallowed, elements of personal use and such - start with net profit after journals to reflect disallowed amounts. Or start with net profit and input disallowed items on tax return.
Always accounts first for me, but things like entertaining (1) and depreciation would be tax return only.
Genuine entertaining I mean - otherwise its a DLA/drawings jobby and wouldn't hit the tax return.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Yeah depreciation is what it is - stuck with that one.
Just seems to give the accounts a truer view if the adjustments are done within, as an oppose to on the return.
But as you say, only so much can be done either way.
Another one which is open to interpretation is the one surrounding say either damaged stock, or free samples - some just go with counting the closing stock and using that figure where as others, (my way too) is to do the same but also have a Dr damaged / free sample Cr Purchases - so I know it gives a higher GP but the net profit is the same - so which is right? To overstate GP or understate GP depending upon your view.
But again to me it's better to have an official free samples account in the P&L than some form of appendix which explains closing stock is valued lower due to damages / sample and so forth.
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
Probably me being dumb and misreading your post John or maybe it's not reading as you intended. But, depreciation and entertaining would of course only appear in the financial statements, not on the tax return at all.
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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.
Yeah sorry Shaun probably didn't word that well. Depreciation and Entertaining are on the PL, but taken out on the tax return when doing the computations. VT Accounts, as I'm sure you know, does it automatically (I can't remember now whether taxfiler does)
What I meant was that these are tax return adjustments only.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
