Trade profit / (loss)

This screen is accessed via the Data Input tab within the tax return. Where multiple trades or professions are included these need to be entered separately. Taxfiler by IRIS will create additional pages as required.

Trust & Estate trade profit/(loss)

  • Name of business – enter the name of the business.

  • Description of business – enter a brief description of the trade.

  • Has the name or address changed since last Tax Return? – tick the box if the name or address of the business has changed since the last return was completed.

  • Date of commencement – enter the date the business commenced if in the current tax year.

  • Date ceased – enter the date the business ceased trading if in the current tax year.

  • Business registered for VAT? – tick the box if the company is registered for VAT.

Capital allowances

  • Capital allowances at 18%

  • Capital allowances at 8% – (for tax years up to 2018/19).

  • Capital allowances at 6% (from 2019/20) – enter the amount of the claim to allowances in respect of Special Rate Pool expenditure.

  • Electric Charge Point Allowances

  • Structures And Buildings Allowance

  • Freeport Structures and Buildings allowance (from 2021/22 onwards)

  • Zero-emission car allowances (from 2021/22 onwards)

  • 100% and other enhanced capital allowances

  • Total capital allowances

  • Includes enhanced allowances for environmental expenditure? – tick this box if any allowances claimed includes claims to enhanced allowances on environmental expenditure. (for tax years up to 2020/21.)

Accounting period

  • Start of period – enter the start date of the accounting period

  • End of period – enter the end date of the accounting period

  • Account details are not required

  • Accounts do not cover period from last accounting date

  • Change of accounting date – tick the box if the accounting date has changed. See HMRC guide. (for tax years up to 2022/23.)

  • Do figures include VAT? – tick the box if the figures include VAT, this is typically the case where a partnership that is registered for VAT is using the cash basis.

  • Is the cash basis being used? – tick the box if the accounting is done on a cash basis. You cannot claim capital allowances if you’re using cash basis, the only exception is cars.

Income and expenses

Use the following fields to enter the values for the income and expenses. Next to each field is a box to be completed if there are any expenses that are disallowed expenses to be added back into the net taxable profit/(allowable loss) value. See HMRC guide for a list of disallowable expenses:

  • Turnover

  • Cost of sales

  • Construction industry subcontractor costs

  • Other direct costs

  • Gross profit/(loss)

  • Other income/profits (include CJRS and other coronavirus support payments). From 2020/21 tax year ensure that any Coronavirus Support Payments received are included.

  • Employee costs

  • Premises costs

  • Repairs

  • General administrative expenses

  • Motor expenses

  • Travel and subsistence

  • Advertising, promotional and entertainment

  • Legal and professional costs

  • Bad debts

  • Interest and alternative finance payments

  • Other finance charges

  • Depreciation and loss/(profit) on sale

  • Other expenses including partnership charges

  • Total expenses Taxfiler by IRIS shows the sum of all the expenses added, and the sum of the disallowed expenses.

  • Net profit/(loss) Taxfiler by IRIS shows the difference between the income and expenses.

Adjustments, tax and charges

Enter any adjustments that need to be included in the return. See HMRC guide:

  • Goods etc. taken for personal use and other adjustments

  • Total additions’

  • Deductions from profit

  • Total deductions

  • Net business profit/(loss)

Basis period adjustments

  • Start of basis period

  • End of basis period

  • Basis period adjustment

    If you have an extended period where Transition profits are being included, once you have manually figured out the apportioned Transition part of the basis period from your Net business profit/(loss) (the value that you are entering in Profit/(loss) of the transition part of the basis period), enter within here the exact same value as within Profit/(loss) of the transition part of the basis period except the opposite with regards to it being a positive or negative figure)

  • Overlap profits b/fwd

  • Overlap relief used

  • Overlap profits c/fwd (Removed from 2024 tax year onwards due to the Basis Period reform)

  • Farm averaging adjustment

Transitional profit

For the tax year 2024, HMRC has introduced the Basis Period reform where individuals may be subject to Transition profits. To learn more see HMRC basis period reform. To help calculate your Transition profits see Transitional rules.

  • Profit/(loss) of the transition part of the basis period – This is Step 2 of the Transitional rules. Enter the apportioned profit/(loss) of the next accounting period to 5th April 2024.

  • Total transitional profit – This is Step 5 of the Transitional rules. Enter the total transitional profit.

  • Transitional profit taxable – This value is the amount of transitional profit being treated as arising in the tax year. The system will automatically calculate this value at 20% of the total transitional profit value entered. This value can be adjusted by the user but must be at least 20% of the total transitional profit.

  • Transitional profit carried forward – Any total transitional profit not being treated as taxable within the tax year will be carried forward and taxed in subsequent tax years.

Profit/(Loss) calculation

  • Net profit for basis period – this calculated by Taxfiler by IRIS using the Net business profit/(loss) taking into account any values entered in the Basis period adjustments section.

  • Allowable loss for period

  • Losses brought forward from earlier years – Taxfiler by IRIS automatically brings forward a carried forward loss from the previous tax year when the new years’ tax return is created. This amount can be manually overwritten.

  • Brought forward losses used against transitional profits – This field is manual entry. Enter the amount of loss that is being used to reduce this year’s transitional profit taxable. Losses brought forward must be used to offset losses in the earliest year possible.

  • Brought forward loss used against profits – This field is manual entry. Enter the amount of loss that is being used to reduce this year’s adjusted profit. Losses brought forward must be used to offset losses in the earliest year possible.

  • Taxable profit after losses – this is calculated by Taxfiler by IRIS after considering any losses brought forward and used against the profit of the current tax year.

  • Total loss to carry forward – this is calculated by Taxfiler by IRIS.

Other details

  • Any other business income

  • Construction industry deductions from contractors

  • Tax taken off trading income

  • Profit or loss is provisional? – tick the box if any provisional income or expenses are included in the profit or loss figure.

Balance sheet

If the Trust or Estate business accounts include a balance sheet, enter the values into the following boxes. If the accounts do not have a balance sheet leave these fields blank:

  • Equipment, machinery and vehicle

  • Other fixed assets (premises, goodwill, investments etc.

  • Stock and work in progress

  • Trade debtors

  • Bank/building society balances

  • Cash in hand

  • Total assets

  • Trade creditors

  • Loans and overdrafts

  • Other liabilities and accruals

  • Total liabilities

  • Net business assets

  • Balance at start of period

  • Net profit or loss

  • Capital introduced

  • Drawings

  • Balance at end of period

Additional text note for Tax return

Enter any additional notes that are to be included in the white space on the tax return.