Why is "4900 misc. income" included in "Turnover" in the Profit & Loss Report?

Accounting
1

Hi,
I am testing Quickfile to do book keeping for my LTD Micro-entity. I think that the online software is very intuitive.

However, I have a question. When I check the “Profit & Loss Report”, I have noticed that any income tagged as “4900 misc. income” is included.

However, shouldn’t this nominal code be excluded from the Turnover as far as FRS 102 Section 23.30–23.31 are concerned?
If so, is there an easy way to exclude it?

Thanks for any pointers.
All the best.

2

Hello @Amedeo_Beretta

The default Profit & Loss report in QuickFile is indeed for management purposes, showing overall profitability, which is why it includes all income codes like 4900. But when it comes to statutory reporting under FRS 102 Section 1A (for micro-entities) and preparing the CT600 for HMRC, you need to be more precise about classification:

  • Turnover: Should only include income from the principal activities of the company — typically sales of goods or services (codes 4000–4899).
  • Miscellaneous Income (4900): Should be excluded from Turnover in statutory accounts but included as taxable income in the CT600, usually reported under “Other income” or a similar section.

When filing the CT600, just make sure this distinction is clearly made.

3

If you’re using FRS105 for micro-entities, then why are you looking at FRS102? To be honest, depending on how much it is and what type of income, I wouldn’t worry overly. It’s taxable income either way, whether you exclude it from one section and add it back in later, or just include it in turnover. You’re not currently required to file a P&L for micro-entity accounts anyway.

4

Thank you very much for your explanation.
Now it makes sense.

5

Thanks, you are right, I should be referring to FRS105, indeed.
Thanks for pointing that out.

1 Like