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Background

The expense and income analysis is used to support an amount of income or expenditure by breaking it down into its component items.

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Developing the schedule

To use the schedule, first develop it from the 'D' schedule, or any other expense analysis. You will be asked to place the cursor on the line you wish to support (on that same schedule), and then press return or double click on a cell in the correct row. The expense analysis schedule will then be loaded. The title will automatically correspond to the description of the item supported on the parent schedule, and the total column will identify any difference between the items analysed and the parent line.

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Completing the schedule

These two rows are hidden until used. Other entries can be placed below these, and additional blank lines inserted by use of the Ins key.

Disallowable items

Any disallowable items may be cast into the disallowable column. The total of the disallowable column cross checks to the adjustment entered on the A schedule computation.

Data Entry

You should use the data entry cells provided to enter details of income and expenditure. You may classify the income or expenditure using the drop down selectors provided on every row, or type in your own caption if you prefer.

Note: any disallowance must take place from the lowest level of analysis, and hence if a supporting schedule (e.g. general reserves) is to be used for a particular line, the disallowance will take place from that schedule, and not from the actual expense analysis schedule.

Investment companies

The investment company version of expense analysis provides for allowable expenses of management to be analysed into the second column, rather than disallowable expenses. A third column is used for allowable property expenses; this analysis will only apply to pre FY 2000 computations, thereafter the user should link through property income and expenditure items from the Expense analysis schedules, which will then be displayed on the Schedule A income/(losses) schedule.

Links

The main D schedule enables links to be created for loan relationship items and foreign exchange differences, as identified on the P/L account. These links are also held at an expense level, and are described together with the following:

Link Depreciation

Depreciation amounts identified in different expense analysis schedules can be pulled together and stored within the Reconciliation of Depreciation section at the foot of the Fixed assets schedule.

Note: this menu item will only exist for companies with an accounting period end post 31 March 1998 (see Depreciation help screen).

Link P/L on disposal

Profit and loss amounts identified in different expense analysis schedules can be pulled together and stored within the Reconciliation section of the Disposals schedule.

Note: this menu item will only exist for companies with an accounting period end post 31 March 1998 (see Depreciation help screen).

Link Multiple reserves

Amounts identified as a provision that is specific, general or nondeductible in nature can be pulled together and stored within the Reconciliation section of the Multiple General reserves schedule. If this schedule is not already in the computation, it will be developed automatically when this link option is used.

Link Loan relationships

Allows an amount to be linked to the Loan relationships schedule. If the loan relationship schedule is not already in the computation, it will be developed automatically when this link option is used.

Link Foreign exchange differences

Allows an amount to be linked to the Foreign exchange differences schedule. If the foreign exchange differences schedule is not already in the computation, it will be developed automatically when this link option is used.

Link capital items expensed

Allows an amount to be linked to the Capital items expensed schedule. If the capital items expensed schedule is not already in the computation, it will be developed automatically when this link option is used.

Link property business income / expense

Allows an amount to be linked to the UK Property Income schedule. If the schedule is not already in the computation, it will be developed automatically when this link option is used.

Link Miscellaneous income/ expense

Allows an amount to be linked to the Miscellaneous Income and Gains schedule. If the schedule is not already in the computation, it will be developed automatically when this link option is used.

Link Research and development relief

Allows an amount to be linked to the Research and development tax relief schedule. If the schedule is not already in the computation, it will be developed automatically when this link option is used.

Link Pension adjustments

Allows an amount to be linked to the Pension adjustments schedule. If the schedule is not already in the computation, it will be developed automatically when this link option is used.

Link Finance lease rental income

Allows an amount to be linked to the Finance lease debtor schedule. If the schedule is not already in the computation, it will be developed automatically when this link option is used.

Link Profit or loss on finance lease debtor disposals

Allows an amount to be linked to the Finance lease debtor disposals schedule. If the schedule is not already in the computation, it will be developed automatically when this link option is used.

Link Intangible fixed assets

Allows an amount to be linked to the Intangible fixed assets schedule. If the schedule is not already in the computation, it will be developed automatically when this link option is used.

Link Land remediation relief

Allows an amount to be linked to the Land remediation relief schedule. If the schedule is not already in the computation, it will be developed automatically when this link option is used.

Link Tonnage tax

Allows an amount to be linked to the Tonnage tax schedule. If the schedule is not already in the computation, it will be developed automatically when this link option is used.

Link Derivative contracts

Allows an amount to be linked to the Financial Instruments/Derivative contracts schedule. If the schedule is not already in the computation, it will be developed automatically when this link option is used.

Link Technical provisions

Allows an amount to be linked to the Technical provisions schedule. If the schedule is not already in the computation, it will be developed automatically when this link option is used.

Link Deductible as paid

Allows an amount to be linked to the Deductible as paid schedule. If the schedule is not already in the computation, it will be developed automatically when this link option is used.

A computation may contain numerous Deductible as paid items which need to be linked through to separate Deductible as paid schedules. In this situation you should develop the Deductible as paid schedules first using Develop, Provisions and Reserves, then Deductible as paid. If you repeat this step it will create numerous Deductible as paid schedules. Once these have been developed, highlight a figure on the income and expense analysis that should be linked to one of these schedules and use the Develop, Link, then Deductible as paid option. If there are multiple deductible when paid schedules already developed, the system will ask which of the schedules you would like the number to link to. This will enable different numbers to be linked to different schedules, and not all to the same schedule.

Link Expensive car leasing

Allows an amount to be linked to the Expensive car leasing schedule. If the schedule is not already in the computation, it will be developed automatically when this link option is used.

Link Multiple car leasing

Allows an amount to be linked to the Multiple expensive car leasing schedule. If the schedule is not already in the computation, it will be developed automatically when this link option is used.

Link Expenses of management

Allows an amount to be linked to the Expenses of management schedule. If the schedule is not already in the computation, it will be developed automatically when this link option is used.

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Standard sub-schedules

The Expense analysis schedule has the following possible supporting schedules, obtained by use of the Develop menu and its submenus.

Income

Foreign income

The Foreign income schedule should be used to analyse foreign royalties and identify appropriate double tax relief. The information from this schedule links to DTR calculations where a comprehensive calculation of double tax for all foreign income is undertaken.

Foreign dividends

The Foreign dividends schedule should be used to analyse foreign dividend income and identify the appropriate double tax treatment. From 2004 onwards, this schedule will deal with foreign income and UK corporation tax, allocation of losses to that income and the calculation of EUFT, and also the foreign dividend movements for deferred tax purposes.

Onshore pooling

The Onshore pooling schedule user should first develop and completed the Foreign Dividends schedule. The software will automatically load the totals from the relevant cells on the Foreign Dividends schedule onto the onshore pooling schedule.

Foreign income taxed as trading income

The Foreign income taxed as Trading income schedule should be used to analyse sources of foreign income which fall to be taxed under trading income. The schedule also provides a structure whereby relief can be obtained for the relevant amounts of foreign withholding tax suffered.

Annual payments not otherwise charged

The Annual payments not otherwise charged schedule can be used to analyse any row on the income and expense analysis schedule as a single source of non loan relationship income, giving the balance sheet movement. The item must consist only of non loan relationship income

Annual payments not otherwise charged - multiple

The Annual payments not otherwise charged - multiple schedule allows any row on the income and expense analysis to be analysed into different sources of non loan relationship income giving the balance sheet movement on each source in a horizontal format.

Provisions and Reserves

Reserves ? single

The Reserves -single schedule allows any row on an expense analysis schedule to be analysed between taxable and non-taxable provisions. This schedule will be suitable both for provisions (e.g. general bad debt provisions) and for deferred income taxed on a non-accounting basis.

Reserves ? multiple

The Reserves - multiple schedule is similar to the schedule above however this schedule provides an analysis of several non tax deductible general reserves and tax deductible specific reserves on a tabular basis.

Deductible as paid

The Deductible as paid schedule provides an analysis of costs which are deductible on a paid basis.

Pension adjustments

The Pension adjustments schedule allows the user to deal with the new accounting treatment for retirement benefits as set out in FRS17.

Employee share acquisition relief

The Employee share acquisition relief schedule should be used to track the amounts accrued for the purposes of employee share acquisitions and also provides an analysis of the corporation tax relief available under FA 2003 schedule 23.

Charges

Charges ? single

The Charges ? single schedule allows an analysis of an expense as a charge on income. The schedule provides separate rows for trade and non-trade charges.

Charges - multiple

As above, the Charges - multiple schedule allows any line on the income and expense analysis to be analysed into several charges on income and treated accordingly.

Leasing

Capitalised Leased Assets

The Capitalised Leased Assets schedule should be developed to deal with assets leased under finance leases. There are separate columns for assets acquired before and after 11 April 1991 to allow SP3/91 treatment as appropriate. The schedule allows any row on the expense analysis schedule to be analysed as the interest charge on capitalised leased assets. The charge is tied to the movement on the leasing creditor.

Expensive car leasing

The Expensive car leasing schedule calculates the non-deductible element of car leasing costs. This schedule can now also deal with multiple expensive car leasing costs

Multiple expensive car leasing

The Multiple expensive car leasing schedule is an alternative schedule to the expensive car leasing schedule, which can be used where many cars are leased. Supporting schedules for each group of leased cars must be developed.

Lease premium deductions

The Lease premium deductions schedule allows the user to track and calculate Section 87 notional rent deductions available for premiums paid for short leases.

Schedule 12 adjustments

The Schedule 12 adjustment schedule calculates any necessary adjustments to be made in the tax computation of a finance lessor where taxable rental income is less than the income or gross earnings recognised in the accounts (i.e. rental payments received in arrears).

Other

UK Property Business Analysis

The UK Property Business Analysis schedule is used to support a total amount of rental income or expenditure by breaking it down into its component items. The total amount and any adjustments will be automatically entered on the Schedule A income/(losses) schedule.

Dividends Payable

The Dividends Payable schedule records the balance sheet movement of dividends payable at the beginning of the period, the charge to the P&L account and the split between various dividend categories.

Investment Summary

The Investment Summary schedule analyses the movement in costs and provisions for investments in other companies.

Directors? remuneration

The Directors? remuneration schedule can be used to record details of directors? names and remuneration to reconcile to the accounts.

Revenue grants

The Revenue grants schedule provides a balance sheet analysis for the movement in revenue grants.

You can develop the Director's remuneration schedule from here, though this is not linked.

Group Deconsolidation

The Group Deconsolidation schedule allows the consolidated profit/loss before tax and extraordinary items to be sub-analysed by company. It also allows any extraordinary and other items to be identified on a company-by-company basis.

Balance Sheet Analysis

The Balance Sheet Analysis schedule forms part of the ?C? series of schedules which track balance sheet movements.

Stock Adjustments

The Stock Adjustments schedule can be used to calculate the value of opening/closing stock where a LIFO basis has been applied to their accounting treatment.

Calculation of Net worth

The Calculation of Net worth schedule should be used to calculate movement between opening and closing reserves, translated at the opening and closing exchange rates.

Amounts included in P/L Reserves

The Amounts included in P/L Reserves schedule should be used to adjust the computation for allowable or taxable amounts that have been accounted for in the P/L reserves and not included in the P/L accounts.

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Carry forward

On carry forward, the captions entered on the earlier year schedule will be transferred to the later year, and the earlier year balances will be placed in the prior year comparative column.

Any rows unused in the later year may be deleted as required.

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Related errors

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