Company was formed six years ago to acquire the client's medicolegal practice. I valued the goodwill at a defencible and very realistc £10k. Obviously, writing off at £1k pa.
Year to 31 March 2021 shows a loss. I have carried back.
I disallowed the amortisation in tax comp. On completing TB for the accounts in the softwate I showed depreciation and amortisation under the appropriate headings. In the compution the software has shown the amortisation as that AND as "amortistion of goodwill" thus disallowing it twice and so reducing the loss by an additional £1k.
I assue that I should show the total of depreciation and amortisation as a composit figure under the former heading.
I think I need to check with the software house as to what, if anything, I have done wrong on their kit.
Thanks in advance for any help and thoughts.
Replies (7)
Please login or register to join the discussion.
Did you manually enter a figure to disallow the amortisation? It sounds like you may have entered in the amortisation and the software has also entered the amortisation, doubling up the add back.
If that's the case, try just deleting your entry.
What software are you using?
Although, I agree that you've somehow included the amortisation twice.
Well, personally I'd always draft the tax comp on a fag packet and key the numbers in myself rather than trust any software to do the job for me.
The good news is that you can overwrite Taxfiler's guess.