Trading income: unincorporated business (sole trader/partnership)

Question 1

what is the first line of the trading income working?

Answer 1

profit before tax (expenses already deducted/income included

Question 2

what do you add back to profit before tax?

Answer 2

• depreciation/loss on disposal
• appropriation of profit
• personal expenses of owner
• general provision
• pension contributions by employer
• third party entertaining/gifts
• donations
• non-trade expenditure
• private use by owner
• fines
• capital related - assets
• capital related - legal fees
• leased cars
• irrecoverable VAT on above items
• income not in the accounts

Question 3

what do you deduct from profit before tax?

Answer 3

• capital allowances (W)
• expenditure not in the accounts
• pre-trading expenditure
• interest receivable
• property income
• profit on tangible asset disposal
• fixed rate deductions