Directory results

 
Result 1 of 7 results
  • Tax Memo - Corporation tax - Chargeable profits - Specific income and expense items - Expense items - Impairment losses - 3540
    To be deductible an impairment loss (also known as a bad debt) must be incurred in the course of the business. This means that an irrecoverable trading debt will be deductible, whereas an irrecoverable loan to a member of staff will not, unless the trade in question is one of making loans. A general bad debt provision (for example, a fixed percentage of all outstanding debts) is not deductible. However, where individual debts have been specifically reviewed and a decision taken as to the likelihood of them...
    Click here
  • Tax Memo - Corporation tax - Other income and expenses - Intangible assets - Corporation tax code - 7440
    The regime is, in practice, fairly straightforward as certain debits (expenses), credits (income) and gains recognised in the company accounts for qualifying intangible assets are also allowed for tax purposes. The main distinction is whether they arise on trading or non-trading items, as follows: - trading items: credits and debits arising on assets held for the purposes of the trade are taxed as trading income (or as property income if the trade is a property business); and - non-trading items: - credits...
    Click here
  • Tax Memo - Corporation tax - Other income and expenses - Loan relationships - Special situations - Impairment losses (bad debts) - 7935
    Where a company prepares its accounts in accordance with an acceptable accounting method (¶7835), it is required to assess its financial assets at each balance sheet date and to see whether there is objective evidence that an asset or group of assets can be said to be impaired. Any profit or loss so arising as a result is recognised in the company's profit and loss account. Impairment losses, under these provisions, are not restricted to cases where the creditor feels default is probable (or has in fact occurred),...
    Click here
  • Tax Memo - Value added tax - Routine VAT - Bad debts - 81360
    VAT is usually accounted for when a supply is made. If the debt in respect of a supply is not paid, the supplier may claim bad debt relief equivalent to the output tax paid to HMRC, provided that certain conditions are satisfied. If such a claim is made, any input tax recovered by the customer must be repaid to HMRC (and in any case a customer who has not paid within 6 months must repay the input tax - see ¶81460). Retailers and suppliers using the cash accounting scheme (¶81515) are not affected by the VAT...
    Click here
  • Tax Memo - Value added tax - Routine VAT - Cash accounting scheme - Special situations - Outsourcing debt collection - 81615
    Where the debts of a business are collected by an agent, VAT must be accounted for in the period in which the agent receives the payment. VAT is due on the full amount received by the agent from the customer, not any reduced amount paid by the agent to the supplier. Where a business sells a debt, it must account for VAT in the period in which any debts are sold or assigned. VAT is due on the full amount of the debts sold or assigned, not the consideration for which they are transferred. If a debt is factored...
    Click here
  • Tax Memo - Value added tax - Special accounting methods - Retail schemes - Using a retail scheme - Calculation elements - Expected selling price - 83520
    At the end of the VAT period the retailer should review the selling prices by taking into account: - price changes (particularly in respect of perishable goods which must be sold by a certain date); - special offers and promotions which were not predicted initially; - goods supplied from normal stock to use in business entertaining or taken for private use; - wastage in light of actual events; - products recalled by manufacturers; - equipment (e.g. freezer) breakdowns; - breakages; - theft; and - bad debts...
    Click here
  • Tax Memo - Value added tax - Administration - Records - Other records - 87060
    In addition to the VAT account, all traders must maintain the following records: - general business and accounting records; - copies of all VAT invoices issued and received; - a record of any exempt supplies; - details of self-supplies; - credit and debit notes; - a refund of bad debts account; - documentation regarding any imports or exports; - documentation issued or received relating to the transfer, despatch or transportation of goods to or from other EU member states or services subject to the reverse...
    Click here
 
Result 1 of 7 results