| Overview |
The adjustments to profit section is the core of the CT computation — it is where you start with the accounting profit or loss and make the adjustments required to arrive at the taxable profit (or loss). BrightTax populates many of these figures automatically from the iXBRL accounts file, but you will need to review and adjust them.
| Accessing the Adjustments to Profit Page |
- Open the CT return and expand the CT navigation toolbar.
- In the Table of Contents, navigate to Adjustments to Profit (also referred to as the CT Computation page).
- Switch to Edit mode using the bottom-left toggle.
| How the Page is Populated |
When a linked iXBRL accounts file is present — either from BrightAP, a direct Year End Accounts task, or a third-party attachment — BrightTax will import key figures automatically including:
- Net profit or loss per accounts
- Depreciation charged in the accounts
- Turnover and other financial statement figures
| ✔ Tip: Always link or attach your accounts before reviewing the adjustments to profit page. If accounts figures change after linking, re-link or reimport to refresh the figures in the CT return. |
| Key Adjustments |
| Adjustment | What It Does |
|---|---|
| Depreciation add-back | Depreciation is not allowable for CT — it is added back to profit. This figure is imported automatically from the accounts if linked. |
| Capital allowances deduction | The tax-allowable deduction for qualifying capital expenditure. Calculated via the Capital Allowances module. |
| Disallowable expenditure | Costs charged in the accounts that are not deductible for CT — e.g. entertaining, fines, certain legal costs. These must be added back manually. |
| R&D additional deduction | The additional CT deduction for qualifying R&D expenditure — entered via the R&D page and CT600L. |
| Losses brought forward | Prior year trading losses available to offset against current year profits — entered in the Losses Memorandum section. |
| Adjusting the Depreciation Figure |
The depreciation figure is imported from the iXBRL accounts file. If the figure appearing in the CT return looks incorrect:
- Check the depreciation posting in the iXBRL accounts file — the figure must be correctly tagged in the accounts for it to import accurately.
- If the accounts figure is correct but the CT return figure is wrong, you can manually override it by switching to Edit mode and typing directly into the depreciation field on the adjustments to profit page.
| ⚠ Important: Manually overriding imported figures means the CT return is no longer in sync with the accounts. Note any manual adjustments made and review them if the accounts are subsequently updated. |
| Losses Memorandum |
The Losses Memorandum section is at the bottom of the adjustments to profit page. It shows:
- Losses brought forward from prior years
- Current year profit or loss
- Losses used against current year profits
- Losses carried forward to future years
Losses brought forward are entered manually in the Losses Memorandum section. See Trading Losses in a Corporation Tax Return for full guidance.
| Frequently Asked Questions |
Q: Where does the opening profit or loss figure come from?
A: The net profit or loss per accounts is imported from the linked iXBRL accounts file. If no accounts are linked, this field will be blank and must be entered manually.
Q: How do I add a disallowable expense?
A: In Edit mode on the adjustments to profit page, locate the disallowable expenditure section and enter the amount to be added back. Include a description for audit trail purposes.
Q: The depreciation figure has imported incorrectly — can I change it?
A: Yes. Switch to Edit mode and type directly into the depreciation field to override the imported figure. Ensure the correct figure is also reflected in the accounts.
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