Trades and Partnerships

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Data is not transferred from Business Tax to Personal Tax. Why?

There are two similar questions that arise in relation to the transfer from Business Tax to Personal Tax:

Q1 - When trying to transfer data from Business Tax to Personal Tax the message 'cannot locate identity of trader' appears. Why?

The Business Tax program transfers data to the person identified as the 'Trader'. If no person has been set up as the trader nothing can be transferred.

Select IRIS Accounts Production and select the business.
Choose the Change option from the Client pull-down menu.
Select the Trader option and enter the identifier of the person (the client id used in Personal Tax).

Q2 - Data appears to be transferred from Business Tax to Personal Tax but nothing shows up in Personal Tax. Why?

The Business Tax program transfers data to the person identified as the 'Trader' or 'Partner'.
If the wrong id has been entered in Accounts Production, the data will go to the wrong place.
With Partnerships, the data is transferred but the Personal Tax menu is not updated to show the entries.)

Select IRIS Accounts Production and select the business.
 
Select the Change option from the Client pull-down menu.

Select the Trader or Partner option and check that the identifiers shown match exactly the client id(s) used in Personal Tax.
If a different id has been used, the person has been set up twice on the IRIS database. One of them must be deleted.

It is nearly always best to delete the person identified as the trader or partner and keep the Personal Tax client.

After deleting the duplicate person, reset the trader or partner shown in Accounts Production to be the client set up in Personal Tax.

How is class 4 NIC computed? How is a deferment claimed?

There are a number of questions about class 4 NIC. The following points, answer the most common queries:

It is based on the profits from all sole trades and partnerships.

Losses will only be set against the class 4 NIC amount if a s380 claim has been made. Any additional losses that may be utilised to reduce the class 4 NIC should be entered on the Class 4 National Insurance screen.

It will automatically be excepted where the man is over 65 or the woman over 60 at the start of the tax year.

The results will be printed on the first set of business pages where there are two or more businesses even if that business has made a loss.

Where there is both a sole trade and a partnership, the results will be printed on the first set of self-employment pages.

Prior to version 7.1 the result was printed on the first set of partnership pages to cater for a quirk in the Revenue's ELS system. This has been corrected by the Revenue so the IRIS software has now been changed.

A deferment may be claimed on any of the sole trade or partnerships with which the client is involved. This is accessed via Class 4 National Insurance; option F on the Sole Trade menu and option B on the Partnership  menu.

How is the description of business entered in box 1 page SES1 or SEF1 (2007 : box 3.2)?

The reference is entered against the business' details.

Double-click on the business listed on the top list view.

This will display the basic tab on the central client maintenance screens.

The client is not registered for VAT. How do I stop IRIS ticking boxes 3.27 or 3.28?

The VAT registration status is entered against the business' details.

Double-click on the business in the top list view and select the Tax tab on the central client maintenance screens.

Note that the VAT tick boxes have been removed from the 2008 return.

Where is CIS25 tax entered?

Select the Adjustments Overlap and Tax tab on the Sole Trade menu.

How does IRIS complete boxes 8 and 19 on SES1 where turnover is less than £30,000 (2007 and earlier years 3.24 to 3.26 turnover £15,000)?

2008 Tax Year
IRIS will complete boxes 8 and 19 on SES1 where turnover is less than £30,000 unless overridden.

If the annual turnover is between £30,000 and £64,000 the short self employment pages will be produced.

If the annual turnover is over £64,000 then the full self employment pages will be produced.  

Note that the £30,000 and £64,000 limits are annual limits. Therefore a long or a short accounting period will have a higher or lower limit respectively.

To override the under £30,000 or £64,000 section, use the option in the business details section to force the appropriate boxes and pages to be produced.

2007 and earlier years
IRIS will fill in the short section (boxes 3.24 to 3.26 on page SE1) if the annual turnover plus other income is below £15,000 (excluding any balancing charges) unless overridden.

If the annual turnover is £15,000 or more the detailed section on page SE2 is used.

Note that the £15,000 limit is an annual limit.

Therefore a long or a short accounting period will have a higher or lower limit respectively.  

Capital allowances and balancing charges may be entered and any entries will automatically adjust the figure shown in boxes 3.24 to 3.25.

To override the under £15,000 section, use the option in the business details section to force page SE2 to be used instead of page SE1.  

The trade has ceased but the computation does not reflect this. Why?

The trade computation should show the words closing year computation, if it does not the cessation date has not been entered.

For sole traders: ensure that the trading ceased date has been entered. For partners: ensure the involvement end date has been entered.

Note that involvement dates are not used for sole traders.

Select Sole Trade or Partnership under Trade, Profession or Vocation on the tree-view menu.

Click Edit on the top list-view.

Enter the trading cease date on the Basic tab for sole traders or Involvement details for the involvement end date (partners).   

The profits are far lower than expected because of an overlong basis period. Why is it so long?

IRIS must be given the starting date for each account period that forms part of the basis period.

Either enter the trading start date (if the account period is the first one) or enter the preceding account period end date (note that it is not necessary to enter any figures for the earlier period).

Select Sole Trade or Partnership from the Trade, Profession or Vocation option on the tree-view menu.

Click Edit below the top list-view or double-click on the business.

Enter the trading start date on the Basic tab.

Click Periods to add the preceding account period.