Trade Profit (Loss) Report

To access this report select Reports, Trade Profit (Loss) report.

This report shows how Business Tax has reached the Trade Profits. The starting point for the computation is the profit from Accounts Production. Business Tax then:

ADDS:

Depreciation

Any balances on the following accounts are added back:

If you do not want one of these accounts to be added back as depreciation you will need to:

• Use the Business Tax accounts option to amend the accounts included in depreciation; AND

• Use the Accounts for Self Assessment option to change the box number to which the account is mapped on the return.

Loss on sale of fixed assets

Any debit balances in Group 78 accounts 325 to 334 (Profit/loss on disposals) are added back.

Any credit balances will be deducted (see below).

If you do not want one of these accounts to be treated as a profit/loss on disposal you will need to:

• Use the Business Tax accounts option to amend the accounts included in profit/loss on disposal

• Use the Accounts for Self Assessment option to change the box number to which the account is mapped on the return.

Disallowed expenses

Amounts entered in disallowed expenses in Postings are added back.

Balancing charges

The balancing charges are picked up from the Capital allowances and Building Allowances option and the Building Allowance Totals screens and added back.

Deducts

Investment income

Balances in the following accounts are deducted from the profit per the accounts to arrive at the Trade Profits.

(N.B. - if you have income which you want to remain in the profit and be taxed as trading income post this income to accounts 52 to 57 rather than using the accounts shown below. Balances on accounts 52 to 57 are shown in the accounts in the same place as the investment income.)

If you do not want one of these accounts to be deducted as investment income you will need to use the Business Tax accounts option to amend the accounts included in investment income

Profit on sale of fixed assets

Any debit balances in Group 78 accounts 325 to 334 (Profit/loss on disposals) are added back (see above).

Any credit balances will be deducted.

If you do not want one of these accounts to be treated as a profit/loss on disposal you will need to:

• Use the Business Tax accounts option to amend the accounts included in profit/loss on disposal

• Use the Accounts for Self Assessment option to change the box number to which the account is mapped on the return.

Disallowed income

Any postings made in the Income disallowed option in Postings are deducted from the profit per the accounts to arrive at the Trade Profits.

Allowable expenses

Any postings made in the Allowable expenses option in Postings are deducted from the profit per the accounts to arrive at the Trade Profits.

Negative cash basis adjustment

If the adjustment for the withdrawal of cash basis is negative it will be deducted to arrive at the correct Trade Profits. This will only appear in the 2000 tax year (or 2001 tax year if the clients account period end date is 05/04/2000).

Capital allowances : treatment in computation

Capital allowances and balancing allowances are picked up from the Capital allowances and Building Allowances option and the Building Allowance Totals screens and deducted from the trading profit.