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The information provided in this section will appear in the repayment section of the tax return provided that the client is self assessing. All returns submitted to the revenue after the deadline of 31 October (2007 : 30th September) (with the exception of electronic submissions which have a later deadline) must have the repayment details on TR5 completed. The tick automatically appearing in box 22.2 of the return is placed there specifically to ensure that the calculation of payments on account is correct. Unless the payment is to be collected through PAYE do not untick this box (i.e. do not enter Y in collect unpaid tax through tax code). The tick is appropriate in all cases where tax in not being collected through PAYE, including clients that have no earned income.
Tax code at year end - this is for information only and does not affect computation of the liability. The client's personal allowance, age allowance and married couples allowance are given automatically.
Collect unpaid tax through tax code [Y/N] - if the client pays tax through the PAYE scheme then any amount owing, up to a maximum of £3,000 (2,000 up to 2010-11, 1,000 1996-97 to 1999-2000) , may be collected through the tax code. IRIS will assume that this is not the case. Enter Y to collect tax through the PAYE code. Leave blank or enter N to tick box 2 on TR5 and the tax will be collected as a balancing payment on 31st January following the end of the fiscal year.
If the return is filed after 31 October (2007 : 30th September), the Revenue will not normally allow the underpayment to be collected through the PAYE code. However, tax returns submitted electronically have a later deadline.
The tick automatically appearing in box 2 on TR5 is placed there specifically to ensure that the calculation of payments on account is correct. Unless the payment is to be collected through PAYE do not untick this box. The tick is appropriate in all cases where tax in not being collected through PAYE, including clients that have no earned income.
Unpaid tax for earlier year included in (Current Year) - enter details of the total amount of unpaid tax from earlier years that is being coded out in the current fiscal year. Do not enter details of tax unpaid from earlier years, if it being coded out in a future fiscal year. This data will appear in box 7 on TCS1.
(Current Year) included in tax code for a later year - enter the total amount of any unpaid tax from the current fiscal year that is being coded out in a future fiscal year. Do not enter details of tax unpaid from earlier years, if it being coded out in a future fiscal year. This data will appear in box 8 on TCS1.
Outstanding debt included in (Current Year) tax code - enter the amount from your P2 PAYE Coding Notice. This data will appear in box 9 on page TCS1.
Tax refunded by tax office or DSS benefit agency - enter any amounts of tax refunded from: PAYE, SC60/CIS25 or unemployment office, Tax credit or tax paid on investment income. Also include any amounts that have been allocated to other liabilities rather than being refunded. We also suggest that this field is used, in conjunction with the additional information box, to enter any tax retained on other qualifying loans that are being administered under the MIRAS scheme. This should not happen, in theory! In practice some loans on let property are under MIRAS. In such cases, enter the gross amount of interest in the appropriate section and the tax retained here. Do not enter tax retained under MIRAS loans for the purchase or improvement of the client's main residence. These loans should not appear on the tax return.
Tax underpaid (-ve) /overpaid (+ve) from earlier years - the field for tax underpaid/overpaid should be entered only for the following reasons:
A claim for farmer's averaging has increased or reduced the income from the preceding year.
A claim of backwards spreading of literary or artistic income increased the income from the preceding year(s)
Post-cessation receipts are carried back to the year of the trade's cessation.
Losses are carried back and set against income of an earlier year.
Additional personal pension contributions have been carried back to the previous year (or two years if there were no net relevant earnings in the intervening year). In other words, the contents of boxes 4.3, 4.8 and 4.13.
Do not enter details of any other unpaid or overpaid tax, for example tax underpaid or overpaid from employment.
(Current Year) tax reclaiming now - a reclaim will be necessary where:
A trading loss from the following fiscal year is carried back into the current year. (Enter details of the claim in the additional information box)
A personal pension contribution is brought back into the current fiscal year. Note that where the contribution is made net then the tax reclaimed will be difference between basic and higher rate bands.
IRIS does not compute this amount automatically. Work out the difference to the tax liability the amount brought back would have had if it had been given as a deduction in the computation. This can be achieved by simply entering a deduction in the Reliefs section just to see the effect. The difference between the tax in the computation with the deduction and the one without is the amount for this field.
Collect non- PAYE tax for next year through the code - tick where necessary
Refer to the Tax Guide for more information.
