ixbrl tax computation
I have been using HMRC's software for submitting CT returns online (I have only done three, but no problems experienced to date). I now have a client with a loan from an asociated company written off, and there appears to be no facility to make this tax adjustment on HMRC's tax comp pages. Does this mean I need to spend £100s to buy commercial ixbrl software just so I can submit this client's tax comp, or does anyone know of a feasible workaround. I don't need the accounts preparation software anyway (as I have done that on HMRC's site), but I am not sure whether I can get just the tax comp. I have tried looking at some of the software sites (tax calc, sage etc), but all seem to require significant investment of cash.
I would be grateful of any help or advice, thank you.
? Profit on disposal of asset + note ?
Workaraound.
Presumably HMRC software will accept tax computation adjustment for "Profit on disposal of fixed asset".
So enter the transaction with this incorrect description BUT attach a note (by .pdf or whatever HMRC accept) to "correct" the return / to provide the correct description for this adjustment stating that original input data was necessarily incorrect due to constraints of HMRC's inadequate online iXBRL software.
What's the difficulty?
By "associated" I assume you mean they are also connected for loan relationship purposes. If so, the write-off should be neither taxable nor deductible. So in the creditor company it's nothing more than an add-back of a non-deductible expense. In the other, it is non-taxable income. i don't use HMRC's software so can't advise you further on the entries, but I would find it hard to believe that it can't cope