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A new feature is included for limited companies in IRIS Business Tax that allows for an average conversion rate to be applied to the accounts of a company which have been posted in Euros/Dollars within IRIS Accounts Production.
For each CTAP, the Corporation Tax computation report will use the specified rate and convert all the accounts entries into GBP. Where a license for IRIS Fixed Asset Register is detected, it is also now possible to setup the asset purchase price in Euros/Dollars and enter a spot conversion rate for each asset, the GBP value will be used for the purpose of calculating Capital Allowances in IRIS Business Tax.
If you have posted accounts in EUR (€) or USD ($) you will be prompted to enter the average exchange rate for the period in order for the Corporation Tax Computation report to be converted to the GBP (£) value. To access this screen select Edit | Conversion Rate from the Business Tax main screen.
The average rate that is entered has a maximum value of up to 4 decimal places. A list of the current foreign exchange rates is also available at https://www.hmrc.gov.uk/exrate
Once the conversion rate has been entered for each Corporation Tax Accounting Period (CTAP), an additional note will be shown on the Corporation Tax Computation report. This note will default to the rate that has been applied for each CTAP.
To edit the default note simply select the check box Override Default Note. Any changes made to the note will only be saved when the Conversion Rate screen has been closed. The default note will appear below the Net Trading Profit (Loss) line on the Corporation Tax Computation report.
To suppress the automatic note from the Corporation Tax Computation report, select Edit | Corporation Tax Computation Options and select the check box Suppress Exchange Rate Note.
All items that are read automatically from Accounts Production will be converted to the GBP value using the rate that has been entered within the Conversion Rate screen.
Any amount that is entered in Business Tax must be entered at the GBP value. These include specific postings, capital allowances and any data entry values.
For some types of income or expense IRIS Business Tax will time-apportion the IRIS Accounts Productions value between the trading CTAPs, these apportioned entries will be converted using the CTAP specific exchange rate that has been entered in the Conversion Rate data entry screen.
Where the exchange rate has only been entered in for a single CTAP and the remaining CTAPs are still set to zero, a summary will be displayed which details the exchange rate that has been entered for the corresponding CTAP.
Some IRIS Accounts Production items which are not specific to any CTAP, will use the average conversion rate for each of the CTAPs, this applies to the following IRIS Accounts Production entries:
Directors Remuneration postings
Deferred Tax postings
Accounts Analysis items
The data entry screen for the above items will display the conversion rate that is being applied; a separate note will also be displayed on the Corporation Tax Computation report under each heading.
If you have a licence for the IRIS Fixed Asset Register there will be a warning message when you enter into the Edit | Capital Allowances | A – Maintain Assets option in IRIS Business Tax.
IRIS Fixed Asset Register will allow the fixed assets to be setup using the foreign currency spot rate for the purchase / (disposal) value. These amounts will be converted automatically to the GBP amount when selecting the assets in IRIS Business Tax.
If the assets are being setup in IRIS Business Tax, the purchase price and proceeds of disposal must be entered in GBP.