If there is a trade present within the company, it is necessary to add the Rental amount back to the profit.
This ensures that only the correctly calculated Allowable amount is incorporated into the calculation of Management Expenses.
If the trade is not a Primary Trade, further adjustments are needed.
If there is more than one trade, the rental amount must be allocated between the trades and the non-trading activity.
Single Primary Trade
Where there is only one trade present and it is the Primary Trade, the Total rentals will be added back to the trading profits to ensure that the correct allowable rental deduction is provided via the Management Expense.
Single non-primary Trade
Where there is only one trade present, and it is not the Primary Trade, the Total rentals must be allocated between the trade and the non-trading activity.
The following will be displayed when there is a single non-primary trade present.
Enter the required amounts in the fields corresponding to Trade or non-trade and the software will make the necessary adjustments.
A validation will be displayed if the allocated amounts do no add up to the Total rentals amount.