When using your system I really enjoy using your ‘Profit & Loss’ report as a quick way of seeing what I will need to pay tax on. One problem is that I enter an expense that qualifies as ‘Annual investment allowance’ (example machinery or laptop) as an 'Asset - furniture / fixtures for example then this doesn’t show up as an expense. So I’ve started entering it as a general expense. If I do log them rather as an asset, is there a way of showing this on the profit and loss report or as a separate report.
This would normally be handled as a pre-tax adjustment. The depreciation is added back and the capital allowances / AIA is claimed on the CT600.
For general reporting and in order to get a rough tax calculation you can post this expenditure to a unique balance sheet code and flag that code as a “deduction” in the tax summary report (just click the blue cog wheel).
This will then deduct any balance posted to that nominal code from your taxable income.
Thank you for replying but I’ve looked all over and can’t see the option to provide a unique balance
sheet - is this ‘Custom Report’? Do I create a tag for all the capital expenditures called ‘deductions’? Or is there already a deductions code? Sorry I’ve never flagged a code so don’t know how to.
I read on another query Preset Date Ranges on Custom Reports that there is a preset date range available on the custom report but there’s none when I go to try create a custom report. This would be quite important.
I think it’s going to be too complex for me to do a custom report. Where do I go for it to just show me a list of my ‘asset’ expenditures (purchases) so that I at least calculate the AIA for the year.
You would create a new nominal code in the Chart of Accounts report (Reports >> Chart of Accounts) - just one that you could isolate from everything else. The Custom Report tool would be used to give you figures based on a specific set of nominal codes.
When you’ve created the code, my post above shows the Deductions line on the tax report, just click the cog and add your new code in there to be counted as a deduction.
Found it thank you. The Chart of Accounts is much better than the profit and loss report. I still don’t know how to do the nominal codes or to create a custom report - do I go to ‘Create new Account’. However I’ve seen how I can just create a report with all the figures I need including the assets & I can export the data so that’s great. Thanks for your help. Is there a tutorial showing us how to do stuff like this? I need a step by step guide to go through.
No problem!
Our knowledge base is full of guides on various topics. However, the one specifically for the Chart of Accounts, including how to add new codes, can be found here: