Trading Profit Adjustment

Individual & Companies
Net Profit per account/ Operating Profit/ (loss) Add: Depreciation Amortization Entertaining Clients/Customers/Suppliers Gift to Customer (Note:1) Gift aid Donation (Note:2) Donation to a Political Party Donation to a National Charity Donation to a National Charity under gift aid scheme (Note: 3) Repair & Renewals (if capital in nature) Motor Expense (only private use portion) Car Lease (Note:4) Telephone (only private use portion) Parking Fines [without employee parking (allowable) fines] Health and Safety Fines Golf Club membership Health Club Subscription Legal fees (Capital in nature) Legal fees in connection with the Issue of Share Legal fees in connection with the Court action Legal fees in connection with a grant of a new lease Legal fees in connection with the Purchase of the Shop Fees for Planning Permission Personal Tax advise Capital Gain Tax work Accommodation (only private use portion) Light & Heat (only private use portion) Any Capital Expenditure (Note:5) Building Extension to enlarge – office/shop/work space Written - off Trade debts Written - off of Loan to customers Impaired debts Written - off (non trade purpose) Non trading interest payables Own Consumption (Note:6) Excessive Salary/Remuneration paid to Family Decorating Private Flat Drawing of the Proprietor Allowance for trade debtors Less: Capital Allowance (Plant and machinery, IBA) Private Telephone (portion of Business use) Any Private Assets (portion of Business use) Use of Office (portion of Business use) Rent paid for Business (Business purpose) x/(x) x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x
Review: Fahim Rehan Khan, Prepare by: Iftekhar IFTE, ifteinfo@gmail.com

Non trading Interest received Income from investment Building Society Interest (BSI) received UK dividend/dividend received Debenture Interest received Bank Interest received Loan Interest received (non trading) Patent Royalties (if not mentioned in the Extracted Income Statement) Profit on Sale of capital assets (industrial building, office building etc.) Pre- trading expenditure for trading Market Research Tax adjusted Trading Profit Note: 1 Gift to customer are only allowable if:  Cost less then ₤50 per recipient per year  Gift is not food, drink, tobacco or vouchers exchangeable for goods  Gift carries a conspicuous advertisement of the business

x x x x x x x x x x x x (x) XX

Note: 2 The Gift aid donation is deducted in the corporation tax computation from total profits and is therefore added back in calculating trading profits. Note: 3  Local Charity:  If small amount of donation  Benefit received from charity should be less then lower off: 25% of Donation or ₤ 25  National Charity:  Under Gift Aid Scheme: (not deductable)  First, added back  Second, Less from Pro Forma of Corporation tax computation  Normal Gift to National Charity:  First, added back  Not deducted from Pro Forma Note: 4 Car lease: If CO2 emission rate >160g/km then add: 15% x lease costs. Note: 5 If plant & machinery adjust for Capital Allowance Note: 6 Selling price not paid = Add If paid, selling price less Amount paid = Add

Review: Fahim Rehan Khan, Prepare by: Iftekhar IFTE, ifteinfo@gmail.com

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