Incidental rental income
in limited company accounts.
I have a new client which operates as a property developer. The properties held for development are treated as stock. The client sometimes receives rental income on some properties and hitherto such rental income has been treated as incidental income on each project and has been included in turnover on the P&L rather than other operating income. On the CT600 the rental income is just included in the overall trading profit or loss, which is obviously incorrect but in actual fact hasn't made any difference to the tax charge.
I think that the correct accounting treatment in the P&L ought to be as other operating income, buit my brain is so frazzled from four hours spent trying to get the company and the comparatives figures set up correctly in IRIS iXBRL that I am having difficulty thinking straight!