Business profits toolkit released

HMRC have released their twentieth and final ‘toolkit’, dealing with business profits. The toolkits are designed to help tax agents and their clients reduce errors in completion of tax returns.

The business profits toolkit is based on the use of UK GAAP and is not intended for companies that have adopted International Financial Reporting Standards.

‘There is no obligation for agents to use the toolkits, but with over 114,000 downloads since the launch last year they are a popular and useful product. They can help agents ensure that returns are completed accurately by focusing agents on the areas of possible error that HMRC consider key,’ the department said.

The current toolkits, available on the HMRC website, cover:

For individuals, business and corporations –

• business profits
• capital allowances for plant and machinery
• capital gains tax for land and buildings
• capital gains tax for shares
• capital v revenue expenditure
• chargeable gains for companies
• company losses
• directors' loan accounts
• expenses and benefits from employment
• income tax losses
• marginal small companies' relief
• national insurance contributions and statutory payments
• private and personal expenditure
• property rental
• vat input tax
• vat output tax
• vat partial exemption

For trusts and estates –

• capital gains tax for trusts and estates (supplement)
• inheritance tax
• trusts and estates