Posting

The Posting option allows you to make changes to the trade profit (loss) computation and the tax return. To make a posting select Edit, Posting.

For new clients you will have to make all the postings required.

For existing clients you can choose to bring forward last years postings when you start the new years’ post file entry if last year you:

disallowed a particular account; or
disallowed a proportion of an account.

Using this facility should reduce the amount of data entry required each year.

Making postings

There are five different posting types:

Disallowed expense postings

Allowable expense postings

Disallowed income postings

Tax on income (Rental Income)

Reverse premiums and inducements (Rental Income)

For the Disallowed expenses and income options there are three methods of making postings.

Click on the + next to the postings type to display the methods. Then double click on the method you wish to use to display the data entry screens.

For the Allowable expenses option only specific postings can be made.

Use an IRIS account total

This option allows you to select a specific account from the trial balance and disallow either the whole account total or a proportion of the account total.

First select the account number you want to disallow. If you are not sure of the account number use the magnifying glass to display a list. You can then move up and down the list to find and select the account you want to use. Once the account code has been selected an Account Maintenance screen will be displayed. Use the 'amount to use' section to allow no proportion, a percentage or fraction to be calculated.

Postings made using this option may be brought forward when you start the Business Tax posting file entry for the next year.

Use an IRIS posting from an account

This option allows you to specify a particular posting to be disallowed. The posting narrative entered in Accounts Production is used as the description on the computation in Business Tax.

First enter the number of the account which contains the postings you wish to disallow. If you do not know the account number. you can use the magnifying glass to display a list.

Next the screen will display a list of the postings in the selected account. Highlight the postings and select OK.

An Account Maintenance screen will then be displayed. Use the 'amount to use' section to allow no proportion, a percentage or fraction to be calculated. In order to change the percentage or fraction at a later stage click on the entry followed by change.

Enter a specific amount

This option allows you to enter free form amounts.

If you are posting an expense, when you select the option a list of expense types is displayed. Select the heading under which the item should appear on the tax return.

The panel allows you to enter the posting description and amount.

Once the screen is complete select OK to return to the Posting options menu from which you can make more postings or exit the option.

When you enter a disallowed expense in this option make sure to allocate it to an expense type for which you have a balance in the total box.

For example if you allocate a disallowed expense to Other expenses when there is no figure in the total box this will not show correctly on the return as you can not have a disallowed expense where you do not have a total expense.

Disallowed expense postings

This option allows you to add back expenses which are not allowable for taxation purposes (e.g. entertaining).

There are three alternative ways to disallow an amount:

Depreciation and/or profit/loss on the disposal of fixed assets should not be entered here as Business Tax adjusts for these automatically.

Allowable expense postings

This option allows you to deduct allowable expenses to arrive at the net profit (e.g. use of home as office).

A panel is displayed at the foot of the screen allowing the entry of the description of the item and the amount.

Disallowed income postings

To disallow an expense select Edit followed by Posting. Select the posting entry and then Disallowed income.

This option allows you to deduct disallowable income in the calculation of the adjusted Trade Profits figure.

There are three alternative ways to disallow an amount:

Tax on income (rental income)

This option allows you to allocated accounts, postings or make a specific entry for any tax paid on properties.

There are three alternative ways to allocate an amount:

Reverse premiums and inducements (Rental Income)

This option allows you to allocated accounts, postings or make a specific entry for any reverse premiums and inducements received on properties.

There are three alternative ways to allocate an amount: