How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3814
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

Can you give me an example of the format of the annual accounts

Customer Question

Can you give me an example of the format of the annual accounts that are required for a private discretionary trust?
Submitted: 2 years ago.
Category: Tax
Expert:  Nicola-mod replied 2 years ago.
Hello,
I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.
I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.
Thank you!
Nicola
Customer: replied 2 years ago.

Dear Nicola,

Yes, thank you I am quite happy to wait. One point that I m particularly interested in is in respect of the income and expenditure account.

Should the income disclosed be the actual amount received i.e.net of tax deducted and ignoring the tax credit attached to dividends, which means that the only tax debited to the I & E account will be any additional income tax payable, OR

Should Total Gross income for tax purposes be shown and deductions the dividend tax credit and the tax deducted from other income be shown as separate items including any additional tax payable?

Many thanks,

Tony

Expert:  Nicola-mod replied 2 years ago.
Hello,
We will continue to look for a Professional to assist you.
Thank you for your patience,
Nicola
Expert:  bigduckontax replied 2 years ago.

Hello Tony, I am Keith and happy to be able to assist you.

Here from the Gov UK web site are the general directions for the maintenance of trust accounts:

https://www.gov.uk/trust-record-keeping-for-tax-purposes

The essential feature of all accounting is that the accounts should reflect a true and fair view of the organisation's income and expenditure for any period. My opinion is that the actual sum received be debited to cash/bank and credited to income received ledger headings. The tax credit attached can be ignored and any additional tax payable, if any, be debited to the I & E account.

I would present the accounts in the conventional Income and Expenditure Account and Balance Sheet format. Putting the gross amount through as income and the tax liability as expenditure is perfectly acceptable but involves more book keeping entries and basically is an unnecessary palaver which, in the words of my old boss, 'Doesn't alter the price of cheese.'

I would be inclined to stick with my first suggestion. I do hope I have shown you a way forward in this matter.

bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3814
Experience: FCCA FCMA CGMA ACIS
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 2 years ago.
Thank you for your excellent support.

Related Tax Questions