This item has three sections:
The amounts to be included in the Income and Expenses sections of item P8 are amounts derived from your accounting system or financial statements, except for:
- the values of opening and closing stock, which are to be shown at tax values, and
- depreciation expenses for small business entities choosing to use the simplified depreciation rules, which are to be shown at tax values.
The income and expense amounts to be included at item P8 should form part of your profit and loss statement and are the basis for calculating your net profit or loss. You should deal with any adjustments to these amounts for tax purposes in the Reconciliation items section of item P8.
Former STS taxpayers
If you are eligible and are continuing to use the STS accounting method, you must complete the income and expenses sections using the STS accounting method. See Former STS taxpayers.
Note: You show personal services income and related expenses at item P1, with one exception – personal services income subject to foreign resident withholding – which you show at this item.