Use the Income Tax rule to change the income tax rate (if required), factor non-deductible items and adjustments into the income tax calculation, and enter any losses brought forward from a previous tax period.
To edit the rule, follow these steps:
From the Customise Data tab click the Profit and Loss tab and expand the Net Profit and Tax Expense section.
Click the Income Tax rule button beside the Income Tax Expense account.
Click Next to view and check the calculations then click Next again. Note: Net profit displayed in the rule modal is as per your forecasts. A positive figure represents a profit and a negative figure represents a loss.
Click the ‘Calculate income tax expense after allowing for adjustments and non-deductible items’ radio button.
Click Next. Note: Net profit displayed in the schedule is as per your forecasts. A positive figure represents a profit and a negative figure represents a loss.
Click + Add adjustment to include an adjustment in your income tax calculations.
Select your adjustment account from the Account dropdown menu. The amounts for this account will be automatically populated in the rule modal and will agree to the data grid. Alternatively, you can choose not to select an account code, and enter amounts manually: Name your adjustment.
If no account code was selected when you added your adjustment, manually enter the amounts into the relevant column. Note: Your tax expense will be recalculated based on any adjustments you have added.