Refresh Personal Tax for Partnership

Introduction

This option allocates the partners’ shares for any period relevant to the tax year to the partners in Personal Tax. Therefore if there is more than one period ending in the tax year you still only need to run the transfer once.

If you make any changes to the partnership return which effect the partners shares you should carry out the transfer again to make sure the revised figures are transferred to Personal Tax.

To access this screen, go to Trades | Refresh Personal Tax for Partnership

Privileges

Practices can restrict the users who can refresh Personal Tax by amending the users' privileges. The default setting on issue will be for all users to have the privilege as this matches the current level of security. These privileges can be changed through Setup followed by Staff Maintenance.

Warn user if Personal Tax return is final

Where a final return for a client has been prepared in Personal Tax, users will be warned that this is the case and asked if they want to continue when they refresh Personal Tax.

The settings used to determine whether a return is final are in Personal Tax located under Administration |Edit Tax Return Dates. Business Tax will look at the date the latest return was produced to see if they are final.

New partnerships - first accounting period straddles 5th April

If a business’ first accounting period straddles 5 April the figures for the period are used to calculate the partners tax liability for two tax years.

For example if a Business starts on 1 January 1998 and the first period ends on the 31 December 1998 when you use Business Tax for the 1998 year end:

the trading fields on the partnership return will be blank as there is no accounting period ending in the 1997 tax year.

although the return is blank the Refresh Personal Tax option allocates the profit for December 1998 to Personal Tax. Personal Tax then time apportions this figure to calculate the partners’ tax liability for the 1998 tax year.

When you use Business Tax for the 1999 tax year:

the partnership return includes the figures for the December 1998 year end

Refresh Personal Tax transfers the profit for the accounting period to Personal Tax. Personal Tax uses the figure to calculate the 1999 tax liability and the overlap profits.

New partnerships - First, short period ends before the end of the tax year

If a partnership starts on the 1 June 1997 with the first period ending 31 December 1997 Business Tax understands that the partners are taxed on an actual basis and the profit figure for the year end December 1998 is required to complete the partners individual returns, although the profits for this period are not included in the partnership return.

Under this circumstance if an accounting period end date and post file have been set up for the December 1998 year end Business Tax:

• loads the figures for December 1997 and 1998 as you enter the Partnerships option in the 1998 tax year;
• puts the figures for December 1997 on the Partnership return;
• transfers the figures for December 1997 and 1998 to Personal Tax so that Personal Tax can calculate the actual profits for each partner.

Negative Values

The Inland Revenue stipulates that certain boxes on the trading pages of the partnership return and self employment pages cannot be negative.

Business Tax now checks for prohibited negative values and, where such a value is detected:

Where a partnership return or internet return is being printed, a warning is displayed informing the user which boxes should be amended.

The boxes which shouldn't contain negative numbers a listed below: