This section explains how to create links to other areas in Corporation Tax. The links from the Profit & Loss to other areas in Corporation ensures that any tax adjustment necessary to the completion of the computation are made.
Adding Tax categories
This feature allows for the adding of Tax categories which creates links to other areas in Corporation Tax for example disallowable adjustments.
To add tax categories to the /Profit & Loss analysis:
- Open any of the profit and loss analysis by clicking on the hyperlink text e.g Administrative expenses
- Left click in any cell or on the title row in the analysis window
- Then immediately right click
- Select Add tax category
- Select any number if categories from the list.Cliick the box alongside the item in the list. Ticking the parent box will automatically select ALL tax categories within that category. E.G Capital allowances within the trade section will create tax categories for all capital allowance types and for all allowance types.
- Once selected click on Add
- The tax categories will appear as columns in the analysis window
Now that the tax categories have been added the Per accounts amount can now be adjusted for tax purposes.
- Enter an amount in the appropriate column that requires adjustment for tax purposes.
- Tab out of the field and the software will automatically create an entry in the appropriate data entry area in Corporation Tax. E.G NTLR credits
- If analysing amounts relating to Disallowable adjustments or Allowable expenses within Management Expenses an extra selection is required after tabbing out of the field.
- Select from the prescribed list of category contained in Disallowable adjustments or Allowable expenses. Click on the arrow to see the whole list.
- To unlink a value left click in the cell then right click
- Select Unlink cell value
This will unlink the value in the Profit & Loss from the value in the destination data entry. It does not delete the entry in the destination data entry area.
- A warning message is displayed when the amount is not linked to an area in Corporation Tax
If a value is not linked then any tax adjustment will NOT be taken into account in the calculation of adjusted profits.
Navigation for linked cells
To navigate from a linked value in the Profit & Loss
- Left click in the cell
- Right click
- Select Navigate to
- Click on one of the options displayed
The majority of the tax categories only have a single destination but for some categories may have multiple. For example expenditure on which a capital allowance is being claimed will have multiple entries:
- Capital allowance area e.g Main pool
- Fixed asset additions
- Disallowable Adjustments (to make an adjustment for capital items expenses)