Provision for rate increase/decrease

provision for supplementary price increase decrease for raw material exempt or not in income tax?
actual supplementary debit note received in next finance year
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Quick Summary
This discussion explores the accounting and tax treatment of provisional entries for supplementary price changes in raw materials. It clarifies that making provisional entries impacts the current year's accounts. Crucially, it highlights that UK income tax rules do not automatically allow for supplementary price increases to be offset by corresponding raw material price increases.

If we provide provisional entries then its impacted in the Accounting of the same year.
There is no rule in income tax by which any price increase can be supplemented by corresponding raw material price increase.

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