Business codes profits assumed in proprietorship business

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This discussion clarifies profit assumptions for various UK proprietorship business codes, including 16019, 14001, 14002, 14009, 14010, 14005, and 15003. It addresses concerns about changing business codes year-on-year and the distinctions between professional services and general business codes like 44AD. For IT/software-related businesses, a 50% profit assumption is mentioned, especially if offering engineering professional services. The advice suggests disclosing the business nature rather than specific codes for clarity.

Rahul Singh

Rahul Singh (Querist)

26 December 2021 in proprietorship business what is the profit assumed under of business codes 16019, 14001, 14002, 14009, 14010, 14005, 15003 ?

does it create any problem if business code is changed from previous year? professional to business

what is different in ada or ad in business codes?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

26 December 2021 What is the nature of your business.

Rahul Singh

Rahul Singh (Querist)

26 December 2021 business fits in all these codes mostly but want to know what is the profit assumed for these business codes thanks

Rahul Singh

Rahul Singh (Querist)

27 December 2021 any help ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

27 December 2021 Disclose nature of your business not the codes I am not conversant with so many codes.

Rahul Singh

Rahul Singh (Querist)

28 December 2021 it / software related but not purely development or consultation

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

28 December 2021 50% profit has to be assumed in case you are a engineering professional providing IT services.
44AD can be opted if you are employed people and having office accommodation.

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