2007-01-20 02:35:47 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United Kingdom
For companies and self employed traders, the profit shown in annual accounts is not strictly the amount of profit that tax is paid on.
Adjustments are made to the profit in the accounts to arrive at the taxable profit, for example any expenses for entertaining clients are 'added back' to profits (because they are not allowed as a deduction in profits for tax purposes), whilst any reliefs due (for example capital allowances on plant and machinery) are 'deducted' to arrive at profits for tax purposes.
If you are referring to adjustments made as part of a HMRC enquiry, the 'adjustments' made are to bring the taxable profit in declared a tax return in line with UK legislation if the amount self-assessed is found to be incorrect.
2007-01-21 04:59:29 · answer #1 · answered by notmarriednochildren 4 · 0⤊ 0⤋
Over here, in Holland, it generally means that they adjust whatever was filed in your tax returns to fit the actual facts (as they know them). This can be good or bad. Generally if you make a lot, it's bad.
2007-01-20 10:45:23 · answer #2 · answered by xane76 3 · 0⤊ 0⤋
i think it means they are gonna change your tax code, which in turn means they are gonna **** you over.
2007-01-20 10:42:05 · answer #3 · answered by handsonhips101 4 · 0⤊ 0⤋