This is a time of major upheaval to financial reporting standards, and we summarise changes fundamental in quantifying and reporting on business profits on which tax computations are to be based. Last week the tax profession updated its guidance on professional conduct and we look at how this affects everyone working in tax. Finally, we update you on HMRC's latest list of car-derived vans and combi vans for input VAT purposes.
Beware of the tax repercussions which follow the changes summarised in this week's newsletter.
Reported profits of a business are the starting point for computing taxable profits for income tax or corporation tax purposes. On transition from one valid basis of accounting to another, a significant number of accounting adjustments may be required and these could have a crucial impact on your clients' tax liabilities. Positive adjustments (i.e. those that increase profits or reduce losses) are taxed as receipts, and negative adjustments are allowed as expenses.
This is an extract from our tax tips newsletter dated 7 May 2015. The newsletter itself contained more details and links to related source material for this story. And, of course there were the other two topical, timely and commercial tax tips. It's clearly written and extremely good value for accountants in general practice. Try it for free by registering here>>>
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