The final expense category is other expenses. Enter in this category any other business expenses not entered in the other categories. As the other categories are reasonably comprehensive and sufficiently general for the vast majority of expenditure to be entered it would be regarded as unusual if any significant sums of money were to be shown in this category. A significant level of expenditure unusual for that category may give rise to an inland revenue enquiry into the self assessment tax return and this is particularly the case of significant expenditure being shown as other expense items.

Tax adjustments to the net profit and loss are where disallowed expenses are entered. Disallowed expenses being items such as the business expenses already entered of which there was personal use, and generally all expenses which have been included that were not wholly business expenses. These would include for example meals paid by the business not classified as client entertainment except where incurred on overnight trips.

Also disallowed is the depreciation charge on fixed assets which as stated is replaced in the tax calculation by capital allowances. Balancing charges being capital allowances on assets sold where the price obtained exceeded the written down value of the asset and entered in the capital allowance section of the self assessment tax return.

Added back to net profit are capital allowances that are claimed by the business. The capital allowances in effect being the tax allowance that replaces the depreciation charge.

A number of potential adjustments can also be entered in the next section which is the adjustments to arrive at the net taxable profit or loss. These adjustments are variable in nature and very much dependent on the adjustments required when the basis year has been changed or past losses are claimed to offset the net taxable profit.

The final section of the self assessment tax return is a list of the business assets and liabilities at the end of the financial year. Completion of this section is optional and should only be completed by those businesses that have produced a balance sheet as part of the accounts. In effect this section is the totals of assets and liabilities taken from the balance sheet and should represent the increase or decrease indicated by the net profit being declared by the business.

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