Yokel

Topics: Generally Accepted Accounting Principles, Expense, Operating expense Pages: 5 (1009 words) Published: March 1, 2014
DEDUCIBLE EXPENSES

Basic principles
an expense will be deductible arriving at the taxpayer's trading profits only if :

(1) It is an income and not a capital expenses
(2) It is incurred wholly and exclusively for the purpose of the trade (3) Its deduction is not prohibited by statute

Expenses are only deductible from trading income by implication from the charging sections which impose tax on " profits" and from ITTOIA 2005 part 2

these rules are more generous than under the employment income previous in ITEPA 2003

A distinction is drawn between expenses incurred in earning the profits ( which may be deductible) and expenses incurred after the profits have been earned, which are not deductible. for example, the payment of income tax is an application of profit which has been earned and is , therefore , not deductible . other taxes, such as rates and stamp duties, may be paid in the course of earning the profits and so may be deductible

扣稅開支

基本原則
扣稅開支將納稅人的交易利潤只有到達:

(1)它是一種收入而不是資本性支出
(2)完全專為目的的貿易產生
(3)沒有法令禁止其扣除

從交易收入扣減費用只有從充電部分徵稅“利潤”,以暗示從ITTOIA2005年第2部分

這些規則更寬厚比以前下的就業收入在2003年ITEPA的

繪製賺取的利潤(這可能是扣稅)費用後已賺取的利潤,這是不扣稅的開支之間是有區別的。例如,繳納所得稅是一個應用程序已經賺到的利潤,因此,不可扣稅。其他稅種,如差餉和印花稅,可能會在賺取利潤的過程中,支付等都可能是扣稅

expenditure that would have been deductible if the trade had not discontinued may be offset against post-cessation receipts . relief against total income is available for certain payments made by an unincorporated business within seven years after cessation. relief is given for the year in which the payment is made and unused relief cannot be carried forward . payments qualifying for relief are those made wholly and exclusively to remedy defective work done, goods supplier or services rendered or by way of damages for defective work; to insure against claims and to collect debts of the former trade.

the expenditure provisions also apply to debts of the business which are, after discontinuance, shown to be bad. the relief must be claimed and is given against income if the year of assessment in which the expenditure is incurred althoug the taxpayer may claim for the excess be treated as an allowable capital loss of the same year if there is insufficient income in that year .

停業後收入可能會抵銷開支本來抵扣,如果沒有停止貿易。對總收入的救濟是戒菸後七年內由一個非法人企業的某些費用。付款和未使用的救濟,不能結轉在這一年中給予救濟。支付救濟資格的那些全資專門來彌補缺陷的工作,商品供應商或提供服務或賠償缺陷工作方式;,投保索賠,討債前貿易。

支出的規定也適用於債務的業務,終止後,被證明是壞的。必須申領救濟的收入,如果有反對課稅年度在其中產生開支雖然體納稅人可以要求允許資本損失同年被視為多餘的,如果沒有足夠的收入在這一年。

general
similar tests are applied for classifying expenditure as income or capital those for deciding whether a receipt is income or capital hence, a distinction is drawn between the fixed and the circulating capital of the business. a payment is capital if it is made to bring into existence an asset for the enduring advantage of the trade . the asset may be intangible as in where a payment by a credit card company to preserve its goodwill was held to be a capital payment

a once and for all payment , even though it brings no enduring asset into existence, is more likely to be a capital nature than a recuring expenses. payment made by the termination of their tenancies were held to be capital, because their purpose was to render capital assets (the premises) more valuable

capital expenditure is not allowable as a deduction in computing the profits of a trade whether expenditure is of a capital nature is ultimately a question of law to be determined in the light of the facts of an individual case .

there is no single test to applied in distinguishing capital from revenue expenditure. for determing profit for accountancy purpose, the important issue is whether expenditure is " consumed" ie used up , and, therefore, when it bring into existence an asset or advantage for the enduring benefits of the recent cases which considered this issue

enduring benefits and this test is still widely used the following capital -related expendses are also disallowed

legal or...
Continue Reading

Please join StudyMode to read the full document

Become a StudyMode Member

Sign Up - It's Free