Creating a Trade - 3 Accounting Periods

Last modified

Overview

You can create a trade:

  • When three accounting periods (APs) are present in the period of account (POA), of which only two can be trading APs.

  • When one or two accounting periods are present in the period of account.

Once the limited company client has been set up and a relevant period of account created and opened, it is necessary to add a trade(s) / business(es) if there is any trading activity in the company.

Create a trade - 3 accounting periods

On the client details page click Tax Returns and then click the Period of Account you want to create a trade for.

  1. On the Data Navigator on the left, click Trading Income.

  2. In the Trading Income table, enter the relevant data.

Trading income.png

  1. In the Trade column, enter a unique name.

  2. To ensure there are not 3 trading APs, either set a trade commencement or cessation date. Either:

    • In the Trade Commencement column, set the date when the trading activity began.

Or

  • In the Trade Cessation column, set the date when the trading activity ceased.

These dates are validated to ensure they are correct and relevant for the POA. If the dates are not correct, you will be prompted to amend them before you can proceed.

Where a trade commencement or cessation date is entered which does not match an existing start or end date for an AP on the system, the Edit Accounting Periods window will be displayed on screen. This will suggest start and end dates for APs based on the information entered on the system.

Edit AP dialog - 3 APs.jpg

The AP end dates can be changed by either typing a date in the box or selecting the arrow to access the calendar. There must be an AP date which agrees with a trade (or all trades) starting or ceasing for the OK button to be available.

If OK is selected, the AP dates shown will then be applied to the Tax Return. The Tax Return will close and reopen automatically, which will allow the AP changes to be made.

If Cancel is selected, the date entered which invoked the Edit Accounting Periods window will be deleted and revert back to the previous state (i.e. if a date was previously entered then this will show, otherwise the field will go blank).

If there are multiple trades, the Edit Accounting Periods window will only show when all dates in a column have been completed.

Note

The system may not always suggest the correct APs where a company has one trade which ceases in the year and starts a new trade after the first has ceased (i.e. trading, non-trading and trading periods). In this case, care must be taken to make sure the APs are correct and you may need to manually amend them.

  1. In the Type column, set the trade type using the options from the dropdown list.

The Type field will default to "UK trade" but a number of different Trade / Business types are supported by the software.

The trade can be created with only the Trade and Type details completed because the remaining fields are optional. However, these fields can also be completed.

Note

The system automatically generates and displays Profit/(Loss) before tax per accounts based on the Tax Return data entered.

  1. Either complete (see section below) or tab through the remaining optional fields to save the row and go to the next row. Alternatively, click the Trade name cell on the next row.

    You can then continue to create more trades or navigate away from the window to start entering Tax Return data.

 

Optional Fields

In the Primary trade? column, select or clear the check box as required:

  • Select the check box to ensure the relevant trade is the default trade for all Per accounts adjustments.
  • If the check box is clear, you will need to manually allocate any Per accounts adjustments between any trades present and non-trade activity from within the relevant data entry windows.

 

Page statistics
80 view(s) and 3 edit(s)
Social share
Share this page?

Tags

CCH Corporation Tax

Comments

You must to post a comment.

Attachments

 

 | Cookie Policy | Copyright | Privacy Policy Terms of Use | Contact Us |