CT600 Box 150: Trading Income Explained

Box 150 on the CT600 is for your gross trading income. This is a key figure that forms the basis of your tax calculation.

What Goes in Box 150?

Box 150 captures your total trading income before deducting costs. This includes:

  • Sales revenue
  • Fees for services
  • Commission earned
  • Other trading receipts
Box 150 = Total income from trading activities

This figure comes from your profit and loss account, before deducting any expenses.

Trading Income vs Turnover

Box 150 (Trading Income) is related to but can differ from Box 145 (Turnover):

BoxContents
145Turnover - your headline sales figure
150Gross trading income - may include other trading receipts
For many companies these are the same, but Box 150 may include:
  • Sundry trading income
  • Income from trading activities not counted in turnover
  • Adjustments for tax purposes

What Counts as Trading Income?

Included in Box 150

  • Sales of goods
  • Fees for professional services
  • Commissions earned
  • Construction contract income
  • Work in progress movements (if trading)
  • Trading grants received

NOT Included in Box 150

  • Investment income (goes in other boxes)
  • Property rental income (Box 190)
  • Interest received (separate treatment)
  • Capital gains (different calculation)
  • Dividends received (not taxable)

How to Calculate Box 150

From Your Accounts

  1. Start with your sales/revenue figure
  2. Add any other trading income
  3. This is your gross trading income for Box 150

Example Calculation

ABC Consulting Ltd - Year to 31 March 2024

ItemAmount
Consulting fees£95,000
Training income£5,000
Sundry trading income£1,200
Box 150 Total£101,200

Relationship to Other Boxes

Box 150 feeds into the profit calculation:

``` Box 150 (Trading Income)

  • Cost of sales
= Box 155 (Gross Profit)
  • Expenses
= Box 160 (Net Trading Profit) ± Tax adjustments = Box 165 (Trading Profits for CT purposes) ```

The Flow of Figures

BoxDescriptionCalculation
145TurnoverFrom accounts
150Trading incomeFrom accounts
155Gross profitIncome - Cost of sales
160Net trading profitGross profit - Expenses
165Trading profitsNet profit ± adjustments

Common Scenarios

Service Business

For a consulting or professional services company:

  • Trading income = Fees billed
  • Cost of sales = Direct costs (subcontractors, materials)
  • Gross profit = Fees - Direct costs
Example:
  • Consulting fees invoiced: £85,000
  • Box 150: £85,000

Product Business

For a company selling goods:

  • Trading income = Sales
  • Cost of sales = Purchase cost of goods sold
  • Gross profit = Sales - Purchases (adjusted for stock)
Example:
  • Product sales: £150,000
  • Box 150: £150,000

Mixed Income

If you have trading and non-trading income:

  • Trading income only goes in Box 150
  • Property income goes in Box 190
  • Investment income has separate treatment
Example:
  • Consulting fees: £70,000 (Box 150)
  • Rental income: £12,000 (Box 190)
  • Interest: £500 (not in Box 150)

Accruals vs Cash

For Corporation Tax purposes, use the accruals basis:

  • Include income when earned, not when received
  • This matches your statutory accounts
  • Invoiced work counts even if unpaid

Common Mistakes

1. Including Non-Trading Income

Property rental, interest, and investment income shouldn't be in Box 150. These have separate boxes.

2. Using Net Figures

Box 150 is gross income before expenses. Don't deduct costs here - that comes in later boxes.

3. Cash vs Accruals Mismatch

Use accruals figures from your accounts, not bank receipts. The CT600 follows accounting profit, not cash flow.

4. Excluding Minor Income

Include all trading income, even small sundry amounts. Missing income could trigger queries.

Zero Trading Income

If your company had no trading income:

  • Box 150 = £0
  • Still complete other applicable boxes
  • Property companies may have Box 150 = £0 but Box 190 with figures
Dormant companies typically have £0 throughout.

When Using TinyTax

TinyTax calculates Box 150 from the figures you enter:

  1. Enter your trading income in the income section
  2. Specify any non-trading income separately
  3. TinyTax populates Box 150 correctly
  4. Review in the CT600 preview
The software ensures trading and non-trading income are allocated to the correct boxes.

Need Help?

TinyTax guides you through entering your income and automatically calculates Box 150 and related figures. Just enter your trading income and the software handles the rest.

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