Re: net and gross profit

On Wed, 20 Jun 2007 19:21:39 +0100, Alan <a@xxxxx> wrote:

Alan Ferris wrote:


Why? If it is still allowable but as an overhead it will make no
difference to the tax liability.

Well I may be missing the point but if you wish to charge an item as an
expense thereby effectively reducing your profit but the IR disagree you
may be faced with the scenario that you have two profit figures - your
real profit and what the IR consider to be your profit which will be
potentially higher and subject to increased taxation.

If I am wide of the mark then please educate me :-)

Then the expense is not allowable.....please read my comments again,

The op was stating that the revenue wanted to move the expense from
COS to overheads which would make no difference and I cannot see the
HMRC wasting time doing so.

--
Alan "Ferrit" Ferris

()'.'.'()
( (T) )
( ) . ( )
(")_(")
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