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Turnover, refunds & negative values
How should I treat “Turnover” and related entries in the software — does the Turnover field represent gross sales/income, or sales after refunds, returns and credit notes?
Also, if refunds exceed sales in a year, how should that be shown (negative turnover, zero, or handled elsewhere, such as under "Other charges" in the Profit & Loss section)?
As a separate point, do figures shown in brackets within TinyTax represent negative amounts?
Thanks
Also, if refunds exceed sales in a year, how should that be shown (negative turnover, zero, or handled elsewhere, such as under "Other charges" in the Profit & Loss section)?
As a separate point, do figures shown in brackets within TinyTax represent negative amounts?
Thanks
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Enter **net turnover**: that is, gross sales minus any refunds, returns, and credit notes for the period. This matches the UK accounting definition of turnover under FRS 105 / FRS 102 — revenue after deducting trade discounts and customer returns, but before deducting operating costs.
Example: if you made £80,000 in sales and issued £5,000 in refunds, enter **£75,000** in the Turnover field.
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**What if refunds exceed sales?**
You can enter a negative figure in the Turnover field — TinyTax carries it through to the P&L and accounts correctly.
On the CT600, HMRC does not allow a negative value in Box 145 (Total turnover from trade), so TinyTax reports Box 145 as £0 in that situation. This is correct: a company with no net positive turnover simply has £0 in Box 145. Your profit or loss figure is unaffected — it flows correctly through the rest of the P&L.
There is no need to move the negative amount to "Other charges" — just enter it as negative turnover and the system handles the rest.
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**Do figures in brackets represent negative amounts?**
Yes. In UK accounting, negative figures are always shown in brackets rather than with a minus sign — so **(2,983)** means minus £2,983. You will see this in the TinyTax form and in the generated PDF accounts for any negative figure (a net loss, net liabilities, negative retained earnings, etc.). It is correct and expected.