Default mapping - Interaction between Accounts Production and Business Tax

Chart EPST for Partnership and Sole Trade

The default chart settings automate completion of various boxes within the Partnership Tax Return in IRIS Business Tax. It also enables items such as depreciation to be added back on the Trade profit/loss computation in Business Tax.

Example

‘Partnership Tutorial’ is a partnership with two partners sharing the profit/loss equally between them. For the year end 05/04/2010 the following entries have been made in IRIS Accounts Production:

Based on the Trial balance IRIS Business Tax will produce the Trade profit and loss computation as below:

Notice IRIS Business Tax has disallowed the depreciation automatically which was initially posted into account code 242 in Accounts Production.

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What if this ‘add back’ item should be allowed for Tax?

Using the example above, if the account code 242 should have been allowed for tax purposes then users are required to delete the default mapping.

To do this:

1. Select Edit | Business Tax Accounts  

2. In the Business Tax Accounts Categories screen double-click Depreciation.

If any of the categories are changed, Yes will display in the Customised column:

3. On the Depreciation screen highlight the Account Code 242 and click Delete.

4. When prompted click Yes.
   
   Once the Account Code 242 has been deleted it will disappear from the list of depreciation codes. Similarly it is also possible to add an account code to automate the disallow process.
   
   Once the account code has been deleted from Depreciation category the computation will be as follows:
   
   

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Will this affect all of my trade Clients on the EPST chart?

No, it will only affect the client currently being selected in Business Tax.

However, it is possible to change it globally for all EPST chart clients by simply carrying out the above under Setup | Business Tax Account Categories

• This can only be done by a Master user.

What does that mean for the Return?

The adjusted profit would be reflected on relevant boxes on the partnership return. For sole trade clients the ‘revised’ adjusted profit would be transferred upon successful refresh from Business to Personal tax.

Is it possible to choose a different box number on the returns other than where IRIS putting it as a default?

Instead of the user mapping each account in Accounts Production to a tax return box number, Business Tax uses a standard mapping to allocate each account balance in Accounts Production to a box on the self-employment pages in Personal Tax, or on to the partnership return. However, the software also recognises that in some cases alterations in the mapping may be required.

This option allows the user to amend the box number an account will be mapped to on the Self-Assessment returns:

• On a global basis where a practice has changed the accounts chart so the standard mapping does not apply for any clients by making a change at chart level.

• On a client basis where the standard chart has been used but the client has an "unusual" type of expense which needs to be mapped in an alternative way.

1. Login to IRIS as the Master User.

2. Click Setup | Accounts for self-assessment
   
   The following screen displays.

3. Click Continue.
   
   
   

4. Select A to change the mapping for a particular client or select B to change the mapping globally for trades on the EPST chart.
   
   

The following warning message displays where option B is selected.

5. Click Continue.
   
   
   
6. Select the Tax Year and click Select.
   
   
   
7. Double-click onto the box where IRIS is defaulting a particular account code to.

8. Highlight the Account Code used in Accounts Production and click Remove. Click Yes to confirm delete.

9. Once the Account Code has been removed, click Add.
   
   

10. Enter the Account code and sub account code used in Accounts Production.
    
    

The (*) symbol indicates modification has been made for accounts.

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