Which box to put transition profits adjustment?

Box 68 or not box 68?

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Do you put the transition profit in box 68?  On my software (BTC), it is the only box that will adjust box 73 to the correct figure - however HMRC notes state -

“Box 68 If your basis period is not the same as your accounting period. You may have to add together the amounts of your accounting periods or apportion the total to work out your profit or loss for your basis period. Put any adjustments to your profit (box 64) or loss (box 65) in box 68. Do not include any transition profit or loss in this box.”

If not box 68, then which one?

Replies (8)

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By pauld
20th Jun 2024 13:24

Not Box 68, Box 73.1

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By claudialowe
20th Jun 2024 13:39

With BTC, the figure in 73.1 doesn't pull through, and box 76 is the same as box 73, resulting in tax being paid on all 15 months (in this case), and then the calculation adds on a further 20% of the transition profit just to add insult to injury.

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By pauld
20th Jun 2024 13:47

Should you not have the usual 12 month accounts entered so that Box 76 is that 12 months with the only extra amount needed being the transitional profits in 73.1.

Calculation then gives box 76 on top line (12 months) with 1/5th of the transitional profits further down in the calcs. Sounds like you are entering a 15 month period and then adding transitional profits as well? Or have you changed the accounting year end to 31 March 24/5 April 24?

I don't use BTYC and so not coming from software experience point of view.

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By claudialowe
20th Jun 2024 14:01

The year end has changed from 31/12 to 31/03 - I think that I am going to have to go with a minus figure in box 68 and an essay in box 103!

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Replying to claudialowe:
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By Ardeninian
20th Jun 2024 14:06

My response below crossed - if you're using a 15 month accounting period then it will be a negative adjustment in box 68 if there was a box 64 profit (positive if there was a box 65 loss). No essay needed - that's the correct approach!

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By Ardeninian
20th Jun 2024 14:05

Best way to think about it is that box 64/65 plus box 68 equals standard profit. Then put transition profit in box 73.1. Sounds like you probably want to put a negative adjustment in box 68 to counter the transition profit. But best to check with the online calculator: https://www.gov.uk/guidance/work-out-your-transition-profit

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By claudialowe
20th Jun 2024 14:10

Thank you Ardeninian - the online calculator has been really useful for the ones that I have done so far. It was the notes that made me doubt myself ;-)

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Replying to claudialowe:
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By Geoff56
20th Jun 2024 14:21

If you use the online calculator and at the end say that you are going to file by paper, not only does it give you all the numbers but also which boxes to put them in.

If you say you are going to file online, it doesn't give you the box numbers.

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