# Ros tax definitions



## CT22008

I'm trying to file my taxes online but need to clarify a few things. Can someone take a look at what I think the definition of the following terms are and see if they are correct

"Amount of adjusted net profit for accounting period" - The gross amount the business took in minus depreciation of goods?

"Enter the assessable profit" - The gross amount the business took in minus expenses and depreciation

"Sales / Receipts / Turnover" - The gross amount the business took in

"Gross Trading Profits" - The total gross profit minus operating expenses

"Net Profit per Accounts" - Same as assessable profits?

Getting an accountant to do the filing for me would be a waste of money as it's a pretty straightforward business. If I knew what the terms meant I can do it a little more confidently. Thanks for any help.


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## Domo

Your accounts may need to be adjusted for tax purposes, as all expenses that you may have claimed in the accounts may not be tax deductible.

E.g. net profits per accounts would not necessarily be the same as the assessable profits.

Would need to see the full accounts to confirm though.


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## DBRAN

delete


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## CT22008

Thanks for the response....I'm assuming all my expenses are fully deductible. I'm pretty sure they are as they are all 100% business related.


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## papervalue

I would advise you to ring around and at least get one appointment with an accountant to see that you are doing it right. Could be money well spent in years to come.

A tax return filled in with a lack of knowledge to me would put in into risk assessment profile for a revenue audit.

For taxi- Turnover and gross profit are more than likely the same figure and them expenses taken off


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## papervalue

"Amount of adjusted net profit for accounting period" 

*This is profit per accounts after all addbacks deductions*

"Enter the assessable profit" - *use same figure as above*

"Sales / Receipts / Turnover" - *The gross amount the business took in(assume not registered for vat)*

"Gross Trading Profits" - *turnover minus (opening stock +trade purchases-closing stock) more than likely for taxi nil*

"Net Profit per Accounts" - *Same as assessable profits?*

*must also fill in accounts screen*

note that you can get increased capital allowances for taxi business


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## CT22008

Thanks everyone....I really appreciate all the help. This might be a little unorthodox but below are my figures for 2008 - rounded up or down to keep it simple and what I input into ROS. If anyone could tell me if my inputs are correct I'd be thrilled.

Total Gross Income - 35,000
Diesel - 5,600
Maintenance & Repairs (incl insurance) - 4,500
Miscellaneous (phone, lunches etc) - 1,200
Radio Rental - 5,200
Capital Allowances - 4,900

Would I be correct in the following:

*Amount of adjusted net profit for accounting period* - ??? can I leave blank?

*Assessable profit* - 13,600

*Sales / Receipts / Turnover* - 35,000

*Capital Allowances (other) *- 4,900
(or should capital allowance be entered in the Machinery and Plant field)

*Gross Trading Profits* - 0

*Motor, Travel and Subsistence* - 10,100

*Other Expenses* - 6,400

*Net Profit per Accounts* - 13,600

I noticed that "Amount of adjusted net profit for accounting period" is not a required field - can I leave it blank like I did anything else not pertaining to me.

Nothing else in ROS seems to pertain to me. I have one medical consultation for €50 - anyone know where this slots in? Hopefully my figures will scare any of ye from entering the taxi industry  Thanks for any advice.


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## papervalue

Total Gross Income - 35,000
Diesel - 5,600
Maintenance & Repairs (incl insurance) - 4,500
Miscellaneous (phone, lunches etc) - 1,200
Radio Rental - 5,200
Capital Allowances - 4,900

Would I be correct in the following:

*Amount of adjusted net profit for accounting period* - *put in 18500*
*Assessable profit* - 13,600*( should be 18500)*

*Sales / Receipts / Turnover* - 35,000 *ok*

*Capital Allowances (other) *- 4,900 *ok what % did you use*
(or should capital allowance be entered in the Machinery and Plant field)

*Gross Trading Profits* - *35000*

*Motor, Travel and Subsistence* - 10,100 *should include lunch here*

*Other Expenses* - 6,400

*Net Profit per Accounts* - 13,600*( should be 18500)*


Nothing else in ROS seems to pertain to me. I have one medical consultation for €50 - anyone know where this slots in? Hopefully my figures will scare any of ye from entering the taxi industry  Thanks for any advice.[/quote]- *no tax benefit here, *

*from looking at above a lot of figures look estimated- does you have books to back up?*

*also i feel revenue what have a good indication of diesel to revenue ratio*


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## CT22008

Thanks alot PV....really appreciate it.

As for the capital allowances 2008 was my second year trading so:

I used 40% for car - initial value was 16,000
20% for license - initial value 6,300
13% for meter, sign & printer - initial value 1,000

Nothing estimated here - as I said I rounded the figures up and down to the nearest hundred just to keep it simple for the purposes of this thread eg. the actual capital allowance I'm calculating is 4,909. I keep all records in a spread sheet....I keep all diesel receipts etc. Does my diesel usage seem high? Diesel costs last year were ridiculous. Not to mention I have to do a 60 mile round trip to work and back.


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## CT22008

papervalue said:


> *Net Profit per Accounts* - 13,600*( should be 18500)*


Do I not deduct 4,900 for capital allowance?


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## papervalue

CT22008 said:


> Do I not deduct 4,900 for capital allowance?


 
if you hit calulate button on ros you see it coming up in the computation. if you leave it at the lower figure it would be double counting the deduction.

once computation sheet comes up you see what i mean


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## CT22008

Ah...gotchya. Many thanks for your help.


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## CT22008

I was just wondering - can I claim anything for *"Depreciation, Goodwill / Capital write-off"*?


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## papervalue

CT22008 said:


> I was just wondering - can I claim anything for *"Depreciation, Goodwill / Capital write-off"*?


 
Depreciation can be deducted in pl but is added back in profit comp- Nil effect.(no point including it unless you are doing a balance sheet)

You are already getting capital write off via capital allowances


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## CT22008

Okay....again thanks for all your help


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## Books

Sorry to bring up an old thread but  is the following capital allowance of 20% on the licence incorrect?
Taken from revenue
While a taxi licence is treated as a capital asset, capital allowances are not available for the cost of acquiring such a licence 
 



CT22008 said:


> Thanks alot PV....really appreciate it.





CT22008 said:


> As for the capital allowances 2008 was my second year trading so:
> 
> I used 40% for car - initial value was 16,000
> 20% for license - initial value 6,300
> 13% for meter, sign & printer - initial value 1,000


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## Graham_07

Books said:


> Sorry to bring up an old thread but  is the following capital allowance of 20% on the licence incorrect?
> Taken from revenue
> While a taxi licence is treated as a capital asset, capital allowances are not available for the cost of acquiring such a licence
> 
> 
> 
> 
> CT22008 said:
> 
> 
> 
> Thanks alot PV....really appreciate it.
> 
> 
> 
> 
> 
> 
> CT22008 said:
> 
> 
> 
> 
> As for the capital allowances 2008 was my second year trading so:
> 
> I used 40% for car - initial value was 16,000
> 20% for license - initial value 6,300
> 13% for meter, sign & printer - initial value 1,000
> 
> Click to expand...
> 
> 
> 
> The 40% on the taxi is correct as it is for vehicles for hire. It  should be claimed on a reducing balance basis, i.e. 40% in the first year on cost. In the 2nd year take 40% of what was left at the end of the first year, and so on.
> 
> The licence does not attract capital allowances so the 20% should not have been claimed there.
> 
> The meter, sign & printer should be 12.5% straight line  over 8 years. i.e. 1/8 of the initial cost each year.
Click to expand...


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## Books

Thanks for clearing this up Graham


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## maniootek

Sorry to bring up an old thread but it seems to be related with "Ros tax definitions" (thread title).

I am trying to file my self-employed income from trades and I am not sure about few fields. Let me show you which ones.

1. *Form 11 > Self-Employed Income > Trading Account Items > Purchases*
Help page says: _Purchases: These are materials or purchases for resale purchased during the accounting period. _
My question is: *Does it mean total value of all goods purchased for resale or just the value of sold goods (stock value at the start of an accounting period + sold goods value - stock value at the end of an accounting period)?*

2. *Form 11 > Self-Employed Income > Trading Account Items > Gross Trading Profits*
Help page says: _Gross Trading Profits: This is the gross profit of your business after adjusting for opening and closing stocks and input costs. _
My question is: *Does it mean: turnover (total income/sale) minus value of sold goods?*


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