Other income on your CT600: one-off receipts, box 205 and cashback

1. What counts as other income

Most of what a company receives has a row of its own: sales go in Turnover, rent in Income from property, interest in Interest receivable. Occasionally a company receives something that is genuinely none of those, usually a one-off. HMRC still taxes it, and the CT600 has a box for exactly this: box 205, income not falling under any other heading. Enter the amount and we take care of the rest, including the CT600 box, your accounts presentation and the working shown in your tax computation. Box 205 is an amount box on the Corporation Tax return, not a free-text disclosure field, so the amount is all you enter. We trust your classification, which makes choosing the right row the important step: if another category fits, use that category instead, as section 3 explains. HMRC describes each box in its Company Tax Return guide.

2. Common examples

• A one-off referral, introduction or finder fee. A design agency is paid £250 for introducing a contact to a recruiter. Introductions are not what the agency sells, so the fee is not turnover. It is still taxable and belongs here. If your company earns commission as part of its normal business, that is turnover instead.
• A casual receipt from an isolated piece of work. A joinery company is paid a one-off fee for letting a film crew photograph its workshop. It is not part of the trade, but it is taxable income and belongs here.
• A cash bonus from your business bank. A fixed promotional reward for opening, switching or paying into a business account, where the amount is set by the promotion rather than worked out from your balance, a rate or how long the money stays deposited, and it is paid separately into your current account. These are taxable for a company even though similar bonuses on personal accounts are usually tax free for individuals. Anything calculated from a balance, an interest rate or the length of a deposit is interest, however the bank labels it, and belongs in Interest receivable instead (box 170). Interest credited to a business savings account always goes there.

3. What does not belong there

Most income already has a row of its own, and using the right one matters because HMRC taxes each income type under different rules:

• Sales of goods or services, including commission your company earns as part of its normal business, belong in Turnover.
• Bank or other interest, and any return worked out from a balance, rate or length of deposit, belongs in Interest receivable and similar income, which files in box 170.
• Rent belongs in Income from property, which files in box 190.
• Dividends received have their own row.
• Profits on selling assets belong in Profit on disposal of fixed assets or Chargeable gains.
• Cashback or a rebate linked to particular spending reduces that expense instead, as in section 4.
• A taxable revenue grant for your trade belongs in Other trading income. A grant towards letting costs belongs in the property rows. For grant income your accounts recognise this period that your company treats as not taxable, use this row with Other income not taxable. Read the grant filing guide for the exact steps.

4. Cashback on business spending

If cashback relates to particular business purchases, treat it as a discount on that spending rather than as income. Cashback on a business card or a rebate on charges reduces your Other charges figure. Cashback on stock or materials reduces Cost of raw materials and consumables. Your profit, and therefore your tax, comes out correctly either way, and your turnover stays a true sales figure.

5. Other income in your accounts

Prepared miscellaneous income

Financial data → Profit & loss → + Add other income → Income not falling under any other heading

Enter the full accounts amount. Do not use this row for amounts entered as dividends, interest or property rent.

Non-taxable part of that same income

Tax adjustments → Other income not taxable

Enter only the part your company treats as not chargeable. Blank or 0 makes no exclusion. The optional Description explains your entry.

Prepared accounting disposal profit

Profit on disposal of fixed assets

Keep the accounting amount separate from the tax gain. Follow the capital-gains guide for the tax fields.

Your FRS 105 accounts show an Other income line within operating profit. It can contain two different things: a profit on selling a fixed asset, and any amount you entered as income not falling under any other heading. They look the same in the accounts but are taxed differently, which is why the filing keeps them as separate entries. The asset profit is dealt with through capital allowances, while the box 205 amount is taxed after any Other income not taxable adjustment.

6. Income that is not taxable

If your prepared accounts include an amount you treat as not chargeable to Corporation Tax, keep it in the full accounts figure. Enter the excluded part in Other income not taxable under Tax adjustments. This reduces the taxable amount in box 205 without deleting the accounts income. An exchange gain or retranslation label alone does not determine its treatment. Our other income not taxable guide explains the optional description and filing steps.

A restriction on spending a grant does not by itself make it non-taxable. An amount your accounts carry forward as deferred income is not income recognised in this period, so do not use this tax adjustment to defer it.

For an accounts period longer than 12 months, this amount is divided between two Corporation Tax returns by days. Even a one-off receipt can appear partly in the return for the other period. Check both computations.

7. If your company has brought-forward trading losses

Same-trade-only losses reduce trading profits through CT600 box 160. They cannot reduce box 205 income. Eligible post-2017 trading losses can instead be claimed against total profits, including box 205 income, through box 285.

Under Trading losses brought forward, enter the full unused pool and identify the same-trade-only part. The claim defaults to the maximum shown. Enter 0 to claim nothing or a smaller amount for a partial claim. Existing drafts use the new treatment after you reopen and save the filing details.

Keep each receipt in its correct category. Do not reclassify it merely to obtain loss relief. See the box 285 claim guide for the conditions, restricted losses and two-return periods.

8. If you are not sure

If you cannot tell which row a receipt belongs in, use the row that matches how your prepared accounts describe it. Most receipts have a row of their own:

• sales, including commission your company earns as part of its normal business, go in Turnover
• other taxable receipts of your trade that are not sales, such as a revenue grant towards running costs, go in Other trading income
• interest goes in Interest receivable and similar income
• rent and grants towards letting costs go in the property rows
• dividends, and profits on selling assets, have their own rows

Use Income not falling under any other heading only for income your accounts recognise that has no link to your trade and no other row. For grants, the grants guide covers each case, including capital grants and deferred income.

This article is general guidance, not tax advice. If your situation is unusual, speak to an accountant before filing.