Employment income and trade profit proformas
In this lesson, you'll learn how to complete the employment income and trade profit proforma sections—essential for calculating taxable profits in Taxation.
This lesson is part of a paid course
Buy the course to unlock every video lesson and the AI Tutor, plus mock exams with feedback on CIMA courses.
Already bought? Sign in
Ask the AI tutor anything about this lesson
It knows every lesson in the course — explanations, clarifications, practice questions.
In this lesson
- 0:00 Employment income components explained
- 0:35 Adjusting trade profits for tax purposes
- 1:49 Time apportionment for non-standard year ends
About this lesson
You'll discover what components make up employment income (salaries, benefits, deductions, and pension contributions) and master the adjustment process for sole traders and partnerships, where you'll add back disallowable expenses like depreciation and entertainment, remove non-trade items, and include allowable expenses to arrive at tax-adjusted trade profit. The lesson also covers the critical rule about year-end apportionment: if your client's year end isn't 31st March or 5th April, profits must be time-apportioned to the tax year basis. This knowledge is fundamental to Taxation and underpins your ability to correctly calculate taxable income across different business structures.
Duration: 2m
Transcript
Every lesson comes with a full searchable transcript - included with the course.
Get the Advanced Taxation course
All 365 video lessons, an AI Tutor in every lesson and lifetime access.
Already bought? Sign in