Business Tax

mattyj3nks

Hello all,

i am sitting my busines tax exam in june and am getting really confused with what things that appear in a profit and loss account would be either added to the net profit, deducted from the net profit or ignored for adjustment purposes from the trading profit for tax purposes.

these are such things as...

accountancy fees payable
amortisation of lease
non-trade interest received
dividends received
employees travel expenses payable
gain on sale of fixed asset
decrease in specific provision for bad debts
gifts of cigars (with company adverts) to customers costing £40 per recipient.
increase in general bed debt provision
donation to political party
employers national insurance contributions
charitable donations under the gift aid scheme

this is a question that our tutor set us....i really have no clue so any help for anyone would be very much appreciated, i may then be able to try and understand

so please help!

mini_schnauzer

Do you not have a course study book (such as Osborne, BPP or Kaplan)?
You can then look up and read about the question that was set for you.
I know from my Kaplan book, this was covered quite early on in the unit.

lewpylew

This exemptions were covered in my BPP book near the start of the business tax syllabus. I am work at present but can look later if you need any help?

mattyj3nks

i have the osbourne book and it is not making it too clear - any help from anyone on here would be very much appreciated.

meibaker

add back:
amortisation of lease
gift of cigar
increase in general bad debts prov
donation
charitable donation


deduct:
dividend
gains on fixed asset

mattyj3nks

Thank you for your answer but im just confusedas to how you came to that.
Is there any types of rules or categories these could be put into so that i can try and understand it easier?

Please help as i seem to be falling behind with this unit already

meibaker

hi, give me your email address
i can forward u my own comparison for this unit!

Lyn32

mattyj3nks wrote: »

Thank you for your answer but im just confusedas to how you came to that.
Is there any types of rules or categories these could be put into so that i can try and understand it easier?

Please help as i seem to be falling behind with this unit already

Hi Matty

I think keep on going until you understand the terminology in this unit, when I was studying this I have no idea what does really means some of this words but I keep trying to read it again and again, also some research through this website, it helps a lot and it begins to make sense all of that stuff.

I'm also aware that before I request this unit BTC updated every year to relate recent tax.(that's what I'm told)
I practise a lot in the past exams paper which help as well as focus on exercises in the textbook you don't realise that it suddenly click into your head.

You can do it! Don't stress yourself too much is a long way yet to the exam period!