Business tax- Make entry for ‘Management Expense’?

ias-12617

Business tax- Make entry for ‘Management Expense’?

26th October 2017

IRIS Business tax- Make entry for 'Management Expense'?

To make an entry for management expense please do the following in Business tax:

1. Data entry
2. Calculation
3. Deductions and reliefs
4. Management expenses

To populate Box 850 (Management Expenses Incurred) in IRIS Business Tax:

Step 1: Go to Data Entry > Deductions and Reliefs

Step 2: Enter the figure in the Management Expenses Incurred field – this will automatically populate Box 850

Additional Note: If management expenses are incorrectly showing as trading losses in Box 780 and 785, you need to: Go to Edit > Posting > Trade Expense Allowable
Use the “specific posting” option to enter the amount, which will remove the incorrect figures from Box 780 and 785
This ensures the management expenses appear in the correct box (850) rather than as trading losses.

Management expenses can be utilised against the total profits of the company:

These expenses are to be entered into box 24 of the CT600 (S75 (3) ICTA 1988 and S242 ICTA 1988).

Excess management expenses are to be carried forward and treated as management expenses of the next accounting period: – The excess management expenses are to be entered into box 137 of the CT600. (S75 (3) ICTA 1988 and S242 ICTA 1988). Excess management expenses can be surrendered and claimed as group relief: – This information should be entered on the CT600C (S403 (1) and (3) ICTA 1988, S403ZD (4) ICTA 1988 and S403ZE ICTA 1988). – The amount that can be surrendered is restricted to the excess of charges + Sch. A losses + management expenses over the total profits of the company. This does not include management expenses brought forward from another accounting period under ICTA88/S75 (3).