Non-operating revenue, or income from secondary sources, consists of income from the sale of assets that are no longer needed by the company, or from investments, such as bonds and stocks. Two of the most common reportable income figures are gross profit and operating income. Though similar, both shine a different light on certain aspects…
HMRC will look at any excessive expenditure as a possible indication of tax avoidance. Once this is complete, HMRC will assign a Unique Taxpayer Reference (UTR) that must be included in all communications with them. Keep your receipts organized, either digitally or in a physical folder, and ensure you can easily match them to your…
The days you used the house as your main home from January 1 to February 28, 2021, and from June 1 to December 31, 2022, aren’t counted as days of personal use. Therefore, you would use the rules in chapter 1 when figuring your rental income and expenses. You don’t have to divide the expenses…
When it’s clear that an account receivable won’t get paid, we have to write it off as a bad debt expense. Lastly, if the receivables are paid back after the discount period, we record it as a regular collection of receivables. It is important to note that cash sales, as with a retail client, are…