The Interaction Between Tax and Accounts

Taxable profits are based on accounting profit and HMRC have only two challenges:

• The profit per the accounts has not been prepared in accordance with generally accepted accounting practice; or
• The relevant adjustments required to comply with tax law have not been made.

Ensuring that tax planning works, increasingly involves ensuring that the related accounting is correct.

HMRC continue to challenge – and win - cases on the basis of incorrect accounting leading to incorrect tax, and recent cases have confirmed the importance of sound accounting arguments.

This course reviews the practical development of these principles and its practical application.

Finally, tax practitioners and accountants are often required to prepare the deferred tax computation and draft the tax notes for the financial statements, and these are changing significantly.

Content

• The development and application of the general principles
  • What is GAAP for tax?
  • How does GAAP interact with tax?
• The tax implications of accounting choices in new UK GAAP
  • On an ongoing basis – accounting policy choices
  • On transition – transitional exemption choices
• How changes in GAAP have changed and can change the tax charge and liability?
  • The changes to taxable profit
  • The changes in tax computation adjustments
  • The key choices
• Errors and changes in accounting policy under new UK GAAP including changing from one standard to another
• Dealing with HMRC on accounting matters
• Accounting and IR 35
• Accounting for tax – changes in the treatment and disclosure of current and deferred tax

This course is designed for Partners and staff involved in preparing business and corporation tax computations and preparing the taa charge and liability for inclusion in financial statements, including those working in tax departments.