Trading profits

The trading profits section is a key section in Taxfiler where much of the information required for the CT600 tax return is entered. As well as the trade profits figures themselves, other key Tax Return items are entered here as adjustments to the net profit and loss per the accounts (for example, bank interest).

The trading profits screen has three tabs:

  • Trade Summary (which includes Trading losses summary)
  • Adjustments to trade profit
  • Capital allowances

Trade Summary

Trade

  • Name of trade’ If the trading name is different from the company name, enter the correct trading name here.
  • Cessation of qualifying activity in this period?’ Tick this box if the qualifying activity has ceased in this period. This box is normally ticked for the accounting period during which the company ceases trading. Ticking the box ensures that balancing capital allowances on pools are correctly calculated.

Period of account

  • Period of account is the same as the accounting period‘ If the period of account is different from the accounting period, you can enter the correct period of account by clicking ‘Change‘. Where a long period of account is entered, you have the option to apportion figures automatically from the long period to the accounting period.
  • Period of account – start’ Displays the start date of the period of account. This field will only be visible if the period of account is different from the accounting period.
  • Period of account – end’ Displays the end date of the period of account. This field will only be visible if the period of account is different from the accounting period.
  • ‘Apportion amounts to account period?’
  • Total turnover in period of account’ Enter the total turnover in the period of account.
  • Financial concern having no recognised turnover?‘ Tick the box if there is no recognised turnover in the period of account.
  • Taxable trade profit/(loss)‘ This field shows the taxable trading profit or loss as calculated on the Adjustments to trade profit tab.
  • Profit/(loss) apportioned to accounting period’ This field is only shown when the period of account differs from the accounting period and you have chosen to automatically apportion profits. This field shows the trading profits apportioned to the current Tax Return.

Trading losses summary

Enter all losses as positive figures

  • Trading losses brought forward – arising before April 2017‘ Enter the trading losses brought forward from previous periods, if any.
  • ‘Trading losses brought forward – arising after April 2017’ Under new s279ZZ CTA 2010, if a company wishes to set brought forward losses against profits arising from 1 April 2017, they are required to specify the amount of their deduction allowance in their corporation tax return for the period.  Please attach a PDF to the tax return stating the amount of the allowance. For additional information please see HMRC.
  • Trading losses brought forward losses set against trading profits’ Enter the brought forward losses that are used to reduce profits of the current year.
  • Losses brought back from later period’ Enter the total of any losses brought back from a later period under s37(3)(b) or s39(2).
  • ‘Losses set off against other income and gains’ Enter the total losses used to reduce other income and gains in this accounting period.
  • ‘Losses set off against group profits (from group relief screen)’ This field shows any loss surrendered to other group companies (from the Group Relief section).
  • Loss surrendered for R&D Tax Credit’ This field shows any loss that is surrendered for R & D tax credit. This field will only be shown if a claim is made for R & D tax credit.
  • Loss surrendered for Film Tax Credit‘ This field shows any loss that is surrendered for film tax credit. This field will only be shown if a claim is made for film tax credit.
  • Trading losses to carry forward – arising before 1 April 2017 This field shows any unused trading losses that are being carried forward.
  • Trading losses to carry forward – arising after 1 April 2017 This field shows any unused trading losses that are being carried forward.

Adjustments to trade profit

The Adjustments to trade profit tab allows input of the net profit per the trading accounts and the necessary adjustments to determine the actual trading profit chargeable to tax for the accounting period.

  • ‘Net profit/(loss) per accounts‘ Enter the net profit or loss per the accounts.

Add

  • Depreciation’ Shows the total disallowed depreciation to be added back. Click ‘Edit…’ to open the depreciation grid.
  • Amortisation‘ Shows the total disallowed amortisation to be added back. Click ‘Edit…’ to open the amortisation grid.
  • Net loss on sale of fixed assets‘ Shows any disallowed net loss on the sale of fixed assets. Click ‘Edit…’ to open the loss or (profit) on sale of fixed assets grid.
  • Disallowable entertaining‘ This field shows the value of disallowed entertaining to be added back. Click ‘Edit….’ to open the disallowable entertaining grid.
  • Donations’ Shows the total value of donations that are disallowed. Click ‘Edit….’ to open the donations grid.
  • Legal and professional fees‘ Shows the total value of legal and professional fees that are disallowed. Click ‘Edit…’ to open the legal and professional fees grid.
  • Repairs and renewals‘ Shows the total value of disallowed repairs and renewals expenditure. Click ‘Edit…’ to open the repairs and renewals grid.
  • Leased high emission cars‘ Shows the portion of expenditure on leased cars that are disallowed. Click ‘Edit…’ to open the leased high emission cars grid.
  • ‘Remuneration not paid’ Shows any remuneration not paid that has been disallowed for tax purposes. Click ‘Edit…‘ to open the remuneration not paid grid.
  • Provisions and bad debts’ Shows the total of any general bad debt provision that has been disallowed. Click ‘Edit….’ to open the provisions and bad debts grid.
  • Other disallowable expenses’ Shows the total of any other disallowed expenses for the period. Click ‘Edit…’ to open the other disallowable expenses grid.

Less: Amounts taxable under other schedules

  • Profits/(losses) from non-trading loan relationships‘ Shows the total amount to be treated as non-trading loan relationships income and excluded from trading profits. This includes bank interest received. Click ‘Edit…’ to open the non-trading loan relationships grid.
  • Annuities & annual payments from which no tax deducted’ Shows the total annuities and annual payments to be excluded from trading profits. Click ‘Edit…’ to open the annuities & annual payments grid.
  • Non-exempt dividends & distributions from overseas companies’ Shows the total overseas income excluded from trading profits. Click ‘Edit…’ to open the Non-exempt dividends & distributions from overseas companies grid.
  • Income from which Income Tax has been deducted’ Shows the total of income that has had income tax deducted and which should be deducted from trading profits. Click ‘Edit….’ to open the Income from which Income Tax has been deducted grid.
  • Net profit on sale of fixed assets’ Shows any net profit on the sale of fixed assets and which should be excluded from trading profits. Click ‘Edit…’ to open the loss or (profit) on sale of fixed assets grid.
  • Other income and gains not entered elsewhere‘ Shows the total of all other income and gains that should be excluded from trading profits. Click ‘Edit…..’ to open the other income and gains grid.
  • Income from UK land and buildings’ Shows the total property income that should be excluded from trading profits. This figure is usually transferred automatically from the Property income section. Click ‘Edit….’ to override the amount to be deducted from trade profits.

Less: allowable deductions not in accounts

Taxable trade profits

  • Taxable profit/(loss)’ This field shows the calculated total taxable trade profits for this accounting period.

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