Adjustments and allowances

Some things on a tax return are not in your bookkeeping. Goods you took for your own use, the private share of a cost, a claim you are entitled to - Kontala cannot infer any of these, so you add them on the Adjustments tab under Tax, then Income Tax.

Adding an entry

1. Open the Adjustments tab for the tax year.
2. Choose the kind of adjustment from the Add dropdown.
3. Enter the amount and a description.

The amount is a magnitude - Kontala already knows which way each kind moves the profit. To correct an entry in the other direction, enter a negative amount; the row's direction flips to match.

Reading the list

Every row carries a chip saying what it actually does:

• adds to profit - an add-back, such as goods taken for own use.
• takes off profit - an allowance or a deduction, such as the Structures and Buildings Allowance.
• moves no profit - it belongs on the return but changes no profit. A CIS deduction suffered is the common case: it is a tax credit, not a cost.

Above the lists, one line states the net: what all of these together add to or take off your profit. That net is the Adjustments and allowances figure on the Computation tab.

CIS deductions suffered

If contractors deduct tax from payments to you, those deductions appear here automatically and total onto box 81 of your return.

They move no profit - they are tax already paid on your behalf. See CIS.

Structures and Buildings Allowance

An SBA claim needs the building's own details as well as an amount, so Kontala asks for them on the entry rather than accepting a bare figure.

Related

• Your computation and SA103 boxes
• CIS deductions taken from you
• Capital assets