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This topic provides information on the Multiple Trades feature in IRIS Business Tax.
Click the links below to jump to a particular section:
Step 1 - Multiple Trade Maintenance
Step 2 - Business Tax Allocation
Step 3 - Business Tax - Trade Specific Data Entry
Step 4 - Business Tax – Corporation Tax Computation
To access this option,
Go to Edit | Multiple
Trades | Trade Maintenance
The Multiple Trade Maintenance screen shows which trades are linked to the selected company. It displays the names, their identifiers and the trading Start and End dates.
Full details for displayed fields are listed
below:
New - click to create a new Trade.
Trade ID – enter the unique identifier for the Trade.
Account Order – this field is mandatory. Enter the Trade order number. The order number will allow you to:
Allocate legacy data to a specific trade.
Specify the order in which the trade
is to appear on the enhanced corporation tax computation report.
If the trade is allocated order ‘1’ you will have the option to allocate the legacy Business Tax data to this trade. This includes postings, trade losses, as well as leased expensive car data. The pool data for the capital allowances will always be allocated to the Trade with order ‘1’.
Click Yes to allocate the legacy data to the specified trade or No to cancel.
Trade Name – enter the name of the trade that is to be shown on the enhanced corporation tax computation report.
Start Date – enter the start date for the trade. The start date must be on or after the incorporated date for the company.
End Date – enter the trade cessation date:
If the trade cessation date is valid for the current CTAP any trade losses will be unavailable to carry forward.
Any balancing allowance due in the general pool for the trade will also be automatically calculated.
If the trade is no longer trading in the selected CTAP, the trade will not be available to select in the Trade Name selection field.
This process is irreversible. If there are no data/postings allocated to the specified trade, the specific trade will be deleted without any further warning. However if there are any data/postings detected the Multiple Trades – Delete dialog displays.
Delete – Allows the deletion of a Trade.
Click Details for a summary of the data/postings that must either be allocated to another trade or where appropriate must be deleted.
View – click to edit the details for the highlighted Trade.
The Business Tax Allocation option is only enabled if there are at least two active multiple trades setup in the Multiple Trade Maintenance screen.
Business Tax will validate if the postings from Accounts Production have been allocated in full within the Business Tax Allocation data screen. If there are any amounts unallocated the menu options will be disabled.
All Profit & Loss account codes (account code 1 to 499) that have postings against them are listed here for the company.
These must be allocated between each of the
trades that have been setup in the Multiple Trade Maintenance option.
This is a prerequisite task as Business Tax will require this in order
to calculate the individual trade profit / (loss) totals.
Allocate the amount for each account/descriptions between the trades.
It is possible to automatically allocate the balance of each account that has not been allocated in full to another trade by selecting the checkbox. The checkbox is the last item in the allocation table for the specific trade.
By deselecting the option to automatically allocate the amount, the Reset Trade Allocation window will be displayed allowing you to reset the trade allocation amount back to zero.
Clicking Yes will restore any amounts for the trade (manual/automatic allocation entries), back to zero.
When the user clicks OK to the Business Tax Allocation data screen, additional validation will be carried out to ensure that the amount(s) have been allocated in full. Where entries are detected that have not been allocated in full, the Unallocated Amounts window will display:
The amount(s) in the Unallocated Amounts window must be allocated in full before Business Tax will allow you to continue. If you select No and close the Unallocated Amounts window, the remaining Business Tax options will be disabled until the amount(s) have been allocated in full.
The multiple trades feature in Business Tax will be fully enabled once the allocation between the trades has been completed.
If working on an existing IRIS database client it is likely that there will be some legacy data. This legacy data may have been allocated to the trade with ‘Account order 1’ setup in the Trade Maintenance window otherwise any brought forward balances must be manually entered/allocated into Business Tax.
Where trade adjustments are required to be made in Business Tax, the data screens have been updated to allow the specific tax adjustment to be made against the specific trade. Full details of the trade specific adjustments can be found below:
To access this screen select Edit | Posting from the Business Tax main screen.
The posting option is used to make adjustments to the Corporation Tax
computation. How the posting adjusts the computation depends on the posting
type and whether it is specific to a trade.
As part of the multiple trades feature, trade specific entries may be made for the following posting types:
Disallowed Expense Accounts
Trade Income Disallowed
Trade Expenses Disallowed
Trade Expenses Allowable
Selecting an IRIS account total - This option allows you to select a specific account from the trial balance and allocate this to a specific trade.
Selecting an IRIS posting - This option allows you to specify a particular posting to be disallowed and allocate this to a specific trade.
Making a specific posting – This option allows you to enter freeform amounts for the specific trade.
To access this screen select Edit | Posting and highlight Directors' Remuneration.
To enter further details regarding an individual director's remuneration highlight the director in question and click Change.
The remuneration allocated to each director is calculated using the amounts that have been allocated to each trade in the Multiple Trade – Business Tax Allocation data screen.
Where a director has a remuneration adjustment for more than one trade, use the Trade Name selection to enter details in for the specified trade(s).
To access this screen select Edit | Losses
This screen allows you to review and amend Trade specific losses for relevant corporation tax accounting periods (CTAPs).
To edit any Trade Loss value,
click Edit Multiple Trade Losses.
In order to allocate any amount as ‘Less Surrender to Group Relief’,
select the ‘Edit’ option and complete the details in the Surrender
as Group Relief tab first, as this will enable the trade specific
‘Less unavailable to group’ fields.
Any amount(s) entered for the [Trade] will update the Company total
amounts in the main Corporation Tax Losses data screen. Additional
validation is also in place to ensure that the [Trade] specific loss
allocation is valid.
The Multiple Trades: Loss allocation
table will display. Use this screen to allocate the trade losses between
each trade entity for the specific CTAP.
Trading Profit / Loss - displays the net profit / (loss) for each trade. The amount is automatically calculated by IRIS Business Tax.
Brought forward - the legacy trade brought forward losses may be allocated to a single trade; therefore it will be necessary to verify that the trade brought forward loss has been allocated to the correct trade(s). In future years, Business Tax completes this field when you run the Bring Forward option. Business Tax sets the [Trade] loss brought forward against the [Trade] Net Profit for the period.
Less utilised against trading income - Business Tax automatically completes this field for each [Trade] entity. The value calculated for the company is also shown in box 4 of the CT600.
Less utilised against other multiple trades income - there is no requirement that the loss from a trade [Trade A], needs to be set against the profits of another trade [Trade B]. However in practice, the company is likely to have the loss from one trade, set off against the profits of another trade. The amount that is allocated between each of the trades must result in the company having a nil balance.
Less utilised against investment income - under certain circumstances trading losses for a [Trade] may be set against investment income in the period.
Losses arising in the CTAP - automatically calculated for each trade.
Brought back - when bringing back a [Trade] trading loss made in a future CTAP, utilising it in the current period for the same [Trade], enter the amount of the loss allowable for offset against this [Trade] field.
Less utilised against total profits - where the [Trade] has made a loss in the CTAP, enter the amount that is to be utilised.
Less loss carried back - where you carry back a [Trade] loss made in the current CTAP to an earlier CTAP, enter the [Trade] carry back amount in this field.
Less surrendered to group relief - the [Trade] field is only accessible if the Surrender as Group Relief tab has been completed in the Group and Consortium (CT600C) data screen. Enter the amount that is to be surrendered for each trade.
Less unavailable to carry forward - if there are [Trade] losses that are to be written off / or should not be carried forward enter the amount for the [Trade].
Amount to carry forward – this value is automatically generated by Business Tax for each [Trade].
To access this screen select Edit | Capital Allowances
This option is used to record assets which are eligible for capital allowances and to calculate those allowances for each trade.
A - Maintain Assets
Each individual asset must be allocated to a specific trade. Select the Trade by clicking the drop-down option.
D - Recalculate
If this is the first year Business Tax has been used, the following needs to be entered at the start of the accounting period, for each trade:
General Pool WDV B/Fwd
Special Pool WDV B/Fwd
E - Maintain Pool
This option allows the user to select the pool for the selected trade:
The multiple Trades
The following screen displays the pool data for the specified trade:
To access this screen select Edit | Building Allowances
This option is used to record assets which are eligible for buildings allowances and to calculate those allowances for each trade.
Each individual asset must be allocated to
a specific trade. Select the Trade by clicking the Trade
Name drop-down list.
To access this screen select Edit
| Leased expensive cars. Set up
the leased car details for each trade.
To access this screen select Edit | UITF40
Enter the total amount of the adjustment in the field provided for the
company. The UITF 40 adjustment must then be allocated via the Business
Tax Allocation screen for the appropriate trade(s).
To access this screen select Edit | Account Analysis
The Account Analysis option can be used to produce an additional report on the Corporation Tax Computation that displays detailed postings made in IRIS Accounts Production.
The report also details any automatic or manual trade specific posting
adjustments that have been made for by the Postings option in IRIS Business
Tax or by the Business Tax Accounts option.
This option displays all Profit and Loss Accounts for each active trade in the Limited Company that has relevant postings made to the account.
By selecting the check box next to the relevant account displayed on screen, IRIS Business Tax will produce a detailed journal of postings made in IRIS Accounts Production for the selected account(s) at the end of the corporation tax computation report.
To add/remove the journal(s) from the computation, simply select the check box to include the selected account(s) in the computation, or deselect the check box to remove the select account(s) from the corporation tax computation report. By selecting or deselecting the first check box on the title bar, IRIS Business Tax will include/remove all the relevant accounts in the corporation tax computation.
This option can be used to manually enter
details for the Account Analysis report attached with the corporation
tax computation.
Click New to create an account description that appears as a title in the Account Analysis report.
Click Delete to remove the account description and all manual postings made in that account.
When the appropriate account has been selected, the Trade must also be selected.
Enter the narrative, amount and disallowed amount in the appropriate columns as they will appear in the corporation tax computation report.
To access this screen select Data Entry | Enhanced Expenditure
Use this screen to enter the trade specific values for the enhanced expenditure section of the CT600 and any trade specific deduction for enhanced expenditure to appear on the corporation tax computation.
Select the radio tab Show trade specific values to add / edit data for the selected trade.
Select the radio tab Show business totals to review the amounts that will be used on the CT600.
To access this screen select Edit | Update Profits
If you have a licence for IRIS
Accounts Production there will be a warning message when you enter
into the Update Profits screen. If you continue to enter data into
this screen when you already have postings in Accounts Production,
the data entered in Business Tax will be added to the ones already
made in Accounts Production; giving you incorrect figures.
Enter the Turnover and Expenses.
Enter the Directors Remuneration for each director in the company.
Select Edit | Multiple Trades | Business Tax Allocation and allocate the income/expenses for the appropriate trade(s).
The multiple trades feature is only compatible with the Enhanced corporation tax computation report.
To access this report select Reports | Corporation Tax | Enhanced
If there are multiple CTAPs, select the CTAP to be printed or check the box to group the CTAPs.
The report will detail each trade, in the following trade specific sections of the computation:
Trade Profit (Loss)
Capital Allowances
Leased Expensive Cars
Summary of trading Losses