Client Maintenance
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A non-client is appearing on the client list. How is he/she removed from the list?
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The client list shows all Personal Tax . Client status may be revoked by selecting the Status option from the Client menu. This option will not delete any of the person's data, it simply removes that person from the client list.
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A single person has a 'married' status. How is this changed to single?
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The marriage record has to be deleted by pressing the Delete button on the View screen, which is accessed via the Marriages button on the central Client Maintenance screen.
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Where are the partners forenames entered (for married couples allowance claim)?
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The partners forenames are required when a claim is made for Married Couples Allowance. (Note that from 2001 onwards this is the case only where one of the partners was born before 6/4/1935.) If the partners is not a client, the following procedure ensures that the person does not appear on the list of personal tax clients.
A: To enter the partners forenames, she or he must be given an identifier. This is placed on the marital status screen in the 'Partners ID' field. After completing the marital status screen, select Close from the client maintenance screen. IRIS will prompt 'Change partners? Yes or No'. Select Yes and the client maintenance screen is redisplayed but will now show the partners identifier in the title bar.
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A person has been set up in Accounts Production/Time and Fees. How is the person selected as a client in Personal Tax?
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If a person has been set up in Accounts Production or the Time and Fees systems, they will not appear on the list of Personal Tax .
A1: The easiest method is to click into the white space at the top of the main screen in Personal Tax (where the client id is normally displayed), type in the id for the person and hit <Return> or <Enter>. IRIS will prompt 'Not currently a client. Make them a client? Yes or No'. Select Yes and then use the change client option to edit the person's details.
A2: If you cannot remember the person's identifier, click on the client browser magnifying glass to the right of the white box mentioned above. In the 'Database view' area, click on the 'whole practice' radio button. The list will expand to show all people on the database. Select the person from the list. IRIS will prompt 'Not currently a client. Make them a client? Yes or No'. Select Yes and then use the change client option to edit the person's details.
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Employment
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The message 'no employments to list' appears. How are details entered?
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The business must be set up and given its own identifier. This business will not appear on the list of Accounts Production clients (unless you want it to). There is no limit to the number of businesses that can be registered on the IRIS database even if you have a client-limited starter-pack system (the limit applies to clients).
A: After displaying the 'no employments to list' message, a new business wizard is used. Follow the screens to set up a new business or to link to an existing employer.
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How is the 'close company' box ticked?
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There are two reasons why box 7 on page E1 (1.7) may not be ticked. The company must be a limited company that has been defined as a close company and the client must be a director of that company.
A 1: To check that the employer is a 'close limited company' double-click on the employer shown in the top list view for benefits, car benefits and expenses. This will display the central Client Maintenance screen. The type of business field will show whether the employer is a limited company. There is a close company tick box on the same screen.
A 2: To check that the client is a director of the company, follow the procedure above to get to the central Client Maintenance screen and pick the "Related" tab. If the person is not a director, set up a new involvement as a director.
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Where is the employer's PAYE reference entered?
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The employer's PAYE reference is shown in box 4 page E1 (1.1) on the employment supplementary pages to the tax return.
A: The reference is entered against the employer's details. Double-click on the business shown in the top list view for benefits, car benefits or expenses. Select the "Tax" tab on the central client maintenance screen.
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The car has been changed in the year. Why is IRIS computing too much car benefit on the second car?
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The cause will probably be that the additional car question has been ticked. This should only be used when the client is provided with two (or more) cars concurrently. 'Additional cars' do not receive a one-third mileage allowance for 2500-18000 miles. They only receive a one-third allowance for more than 18000 miles. A replacement car should not be flagged as an additional car.
A: Do not tick 'Additional Car'. Also make sure that the correct 'car acquired' and 'usage relinquished' dates have been entered on the car benefit screen.
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How do I enter the total car benefit (or fuel benefit) from form P11D without using the car benefit data entry screens?
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Enter car benefit as a type 29 benefit-in-kind and fuel benefit as a type 30 benefit-in-kind.
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Why was the car not brought forward to the new tax year?
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A date 'usage relinquished' was entered of 5/4/yy on the previous year's car benefit screen. If the car is available all year leave the date 'car acquired' and date 'usage relinquished' fields blank. IRIS will automatically compute car benefit for the whole year
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How do I restrict fuel benefit where it is available for only part of the year?
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Fuel benefit, if claimed, will automatically run for the same period as the car. If the fuel benefit itself is available for only part of the time that the car is available, it must still be charged for the full period of the cars availability. TA88 s157(1)(5)(6).
From 2004 onwards the rules have changed and there are separate dates for the period that fuel was provided.
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Trades and Partnerships
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Data is not transferred from Business Tax to Personal Tax. Why?
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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.
A: 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. (Note: with Partnerships, the data is transferred but the Personal Tax menu is not updated to show the entries.)
A: Select IRIS Accounts Production and select the business. Choose 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.
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How is class 4 NIC computed? How is a deferment claimed?
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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.
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How is the description of business entered in box 1 page SES1 or SEF1 (2007 : box 3.2)?
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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.
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The client is not registered for VAT. How do I stop IRIS ticking boxes 3.27 or 3.28?
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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.
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Where is CIS25 tax entered?
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Select the Adjustments Overlap and Tax tab on the Sole Trade menu.
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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)?
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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.
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The trade has ceased but the computation does not reflect this. Why?
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The trade computation should show the words "closing year computation", if it does not the cessation date has not been entered.
A: 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.
Step-by-step guide:
1. Select Sole Trade or Partnership under Trade, Profession or Vocation on the tree-view menu
2. Click the Edit button on the top list-view
3. Enter the trading cease date on the Basic tab for sole traders or Involvement details for the involvement end date (partners).
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The profits are far lower than expected because of an overlong basis period. Why is it so long?
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IRIS must be given the starting date for each account period that forms part of the basis period.
A 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).
Step-by-step guide:
1. Select Sole Trade or Partnership from the Trade, Profession or Vocation option on the tree-view menu
2. Click the Edit button beneath the top list-view or double click on the business.
3. Enter the trading start date on the 'Basic' tab. Click the Periods button to add the preceding account period.
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Property
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How is the 10% wear and tear allowance claimed?
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The wear and tear allowance is computed on 10% of Rental income less type 1 expenses. If a claim is made then no claim may be made for furniture renewals.
A: Ensure that the type of property entered via the Property in the UK screen is set to Furnished Letting. Click on the magnifying glass beside the income type field and select the 'Furnished Letting' from the list. IRIS will then prompt whether a 10% wear and tear claim should be made. Enter Y and click Ok on the Property in the UK screen to save the change.
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There is an exception report for non-commercial lettings restricting the expenses. What does it mean?
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Properties that do not charge a commercial rate for the rent cannot create a loss by claiming expenses that exceed the rent received. If IRIS recognises the property as a non-commercial letting, the expenses will be restricted.
A: Check the type of property is not set to an 'Unfurnished Letting, Nominal Rent' This is set via the Property in the UK. Click on the magnifying glass beside the income type field and select Unfurnished Letting and change to an alternative sub-type.
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Deduction and Allowances
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A pension contribution made in the following tax year is brought back to the current tax year but no deduction appears in the computation. Why?
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Under the SA system pension contributions brought back from the following year are not given as direct deduction to the tax computation. The amount of relief is given by a kind of tax credit. For example, a gross premium of £1,000 carried back is worth £400 to a higher rate taxpayer. This amount (400) should be entered as an amount of 'tax you are reclaiming now' in box 18.9 on the tax return. This will act like a credit on the client's account. The amount must be computed manually. Treat the amount as if the client has paid an amount towards his or her next balancing payment or payment on account.
Payments made after 6/4/2001 or any employee contributions prior to that date are paid net of basic rate tax. Therefore additional relief applies only to higher rate taxpayers. For example a higher rate taxpayer making a contribution of £780 net (in 2001-2002) will be entitled to another £180 tax relief.
A: To enter the tax you are reclaiming now select Tax code & Underpaid/Overpaid/Repaid from the miscellaneous data entry menu. The amount entered will not affect the computation of the tax due for the year (box 18.3) or the payments on account, if applicable (box 18.6).
From 6/4/2006 it is no longer possible to carry back pension contributions made in the following year into the current tax year
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Married Couples Allowance has been transferred to the Wife/lower earning partner but it still appears on the clients return. Why?
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Married couples allowance may be transferred from the husband/higher earning partner to the wife/lower earning partner if his income is too low to utilise part or all of it.
A: The amount of allowance must be entered manually. Enter it in the first of the two amount fields on the Married Couple - Transfer of Allowance screen. Make sure that the amount transferred does not exceed the amount unused in the computation. If unsure, run the tax computation without transferring the allowance; the amount shown as unused can be transferred. Also make sure that the amount transferred does not exceed the amount allocated to the husband/higher earning civil partner. In other words if half the allowance has already been allocated to the wife/lower earning partner, only half may be transferred to the wife/lower earning partner.
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How is Widows Bereavement Allowance (WBA) claimed?
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It is claimed automatically in the year and year following the husband's death. Ensure that his date of death has been entered on the Name etc screen on the client maintenance menu. If the husband has not been entered, his date of death may be entered at the bottom of the marital status screen (also on the client maintenance menu).
Note that WBA is abolished from 6/4/2000 onwards. Widows who's husband died in the year ending 5/4/2000 may claim WBA for the 2001 tax year.
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Capital Gains
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Where are capital gains entered?
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Select Capital Assets from the Edit Return pull down menu.
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How to enter the disposal of shares?
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There is a step-by-step example to illustrate this.
Answer: The Share Holding section is used to enter details of the initial purchase of shares. Use the option for operative events to dispose of some or all of the shares. (The operative event screen is also used to enter details of the purchase of more shares of the same class.) Enter a date and then change the line that (by default) shows 'Acquisition' to 'Disposal'. The date must be entered before this change can be made.
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How to select the client's spouse?
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The Capital Asset module is written as a stand-alone module. This means that it does not use the client/spouse radio button at the top of the main Personal Tax screen. Capital Assets will always start with the client selected.
Answer: To select the spouse, while in Capital Assets, choose 'Select Client' from the File pull-down menu and select the spouse from the list of Personal Tax clients. Alternatively select the person as a client before choosing Capital Assets from the Edit return menu.
(This does not apply to Limited Companies)
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Why is the indexation allowance less than I expected?
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The indexation allowance applied from April 1982 to April 1998 and was replaced by taper relief from April 1998 onwards. Assets held prior to this date are given indexation allowance to April 1998.
Note: Indexation continues to be calculated on gains for Limited Companies from April 1998.
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How can I claim taper relief?
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IRIS will automatically compute any taper relief due on the disposal of an asset, share holding or other capital gain. Taper relief will be computed using the date the asset etc. was acquired, date of disposal and whether the item concerned is used for business or private purposes.
(Taper Relief does not apply to Limited Companies)
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Tax Return
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How can I print a blank return?
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The option to print a blank return will be available only if a single part of the return is selected. For example, to print a blank main form, ensure that none of the supplementary pages are ticked on the tax return form options. The print blank return report option will then be available (rather than grayed out)
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How can I print a range of pages?
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Print the tax return to screen then use the page range icon located in the top left of the screen to select the range of pages to be printed
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Where does the data in box x.xx (ie anywhere on the return) come from? or How do I enter data in box x.xx/Qnn?
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Click here for box finder help
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How can I print detailed schedules to the return?
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The Schedules of Data will print the information that is used to make up the totals shown in the boxes on the tax return.
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The client is due a refund but the Tax Calculation section has not been completed (2007 Q19 is not ticked). Why?
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From the reliefs etc tab, click on the miscellaneous option then repayment claim, this section must be completed if the client has a repayment.
Alternatively this section can also by accessing the setup menu and selecting the repayment claim option, this allows a global default to be set enabling this section to be completed automatically
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Personal Tax has computed a payment on account in box 9 on TCS1 (2007: 18.6). The amount should be lower or nil. How is it changed/computed?
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The payment on account is computed automatically based on the tax due (shown in box 2 on TCS1 (2008 : 18.3)). The amount is basically 50% of the tax due but the following factors affect the computation:
Capital gains tax due is deducted from the tax due before computing the limits shown below.
In 1997 the share of partnership tax and class 4 NIC (boxes 4.74 and 4.75) is added to the tax due before computing the limits shown below.
There will be no payment on-account if the tax due is less than £500
There will be no payment on-account if the tax due is less than £2,000 (£1,000 in 1999-2000 and earlier years), the return is filed before 31 October (30 September for 2007 and earlier years), and the tax due is to be collected through PAYE code as box 2 on TR5 (2007 : Q23.1A) has not been ticked.
There will be no payment on-account if the client has paid 80% or more of tax at source (PAYE, tax credits etc)
The SA system does not take account of sources of income that have ceased to exist when computing the payment on-account. Therefore, if a client switches from Schedule D to PAYE then it is unlikely that payments on-account will be required. In such cases, or when the client dies, a claim should be made to reduce the payment on-account.
Answer: To reduce the payment on-account (tick box 9 and reduce the figure in box 10 on TCS1 (2007 : 18.6 and 18.7) select the year ahead of the tax return year (ie select year 2009 when making a claim to reduce the payments on-account shown on the 2008 tax return). Choose the option to claim to reduce payments OAC from the administration pull-down menu.
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How is a partnership tax return (SA800) printed?
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Use IRIS Business Tax to print the business return.
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How is a trust return (SA900) printed?
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The separate Trust Tax module is required.
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Computation
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A pension contribution made in the following tax year is brought back to the current tax year but no deduction appears in the computation. Why?
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Under the SA system pension contributions brought back from the following year are not given as direct deduction to the tax computation. The amount of relief is given by a kind of tax credit. For example, a gross premium of £1,000 carried back is worth £400 to a higher rate taxpayer. This amount (£400) should be entered as an amount of 'tax you are reclaiming now' in box 15 on TCS2 (2007 : 18.8). This will act like a credit on the client's account. The amount must be computed manually. Treat the amount as if the client has paid an amount towards his or her next balancing payment or payment on account.
Payments made after 6/4/2001 or any employee contributions prior to that date are paid net of basic rate tax. Therefore additional relief applies only to higher rate taxpayers. For example a higher rate taxpayer making a contribution of £780 net (in 2001-2002) will be entitled to another £180 tax relief.
A: To enter the tax you are reclaiming now select Tax code & Underpaid/Overpaid/Repaid from the miscellaneous data entry menu. The amount entered will not affect the computation of the tax due for the year in box 18.4 or the payments on account, if applicable, in box 10 on TCS1 (2007 : 18.7).
From 6/4/2006 it is no longer possible to carry back pension contributions made in the following year into the current tax year
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Why are the trading losses not appearing as deductions on the computation?
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s380 claim must be made. The losses will not automatically be deducted from income, they will be carried forward (s385) for use against future profits from the same business if no action is taken.
Answer: To make a s380 claim, enter the 'loss offset against other income' (as a positive number) on the adjustments to profit and loss for tax screen (sole trades) or the share of trading income screen (partnerships).
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Where does such and such an amount come from?
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Click here for Tax Computation information
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The trade has ceased but the trade computation does not reflect this. Why?
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The trade computation should show the words "closing year computation", if it does not the cessation date has not been entered.
A: 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.
Step-by-step guide:
1. Select Sole Trade or Partnership under Trade, Profession or Vocation on the tree-view menu
2. Click the Edit button on the top list-view
3. Enter the trading cease date on the Basic tab for sole traders or Involvement details for the involvement end date (partners).
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The profits are far lower than expected because of an overlong basis period. Why is it so long?
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IRIS must be given the starting date for each account period that forms part of the basis period.
A: 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).
Step-by-step guide:
1. Select Sole Trade or Partnership from the Trade, Profession or Vocation option on the tree-view menu
2. Click the Edit button beneath the top list-view or double click on the business.
3. Enter the trading start date on the 'Basic' tab. Click the Periods button to add the preceding account period.
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Exception Reports
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An exception report states that it could not establish relief limit for old rules maintenance payment. How is the 5/4/89 amount entered?
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Relief for maintenance payments under the old rules cannot be increased above the amount claimed in y/e 5/4/89. IRIS will check this but if the 5/4/89 amount has not been entered, an exception warning is printed.
A: To insert the 1989 payment, it is not necessary to edit the 1989 tax year (which is not available). Select the current tax year and choose Maintenance or Alimony paid. The maintenance agreement will be listed on the screen. Click on the Payments button and then click New to add a new payment. IRIS will prompt for payment made in a particular tax year. Press <PgUp> until it shows the period 6/4/88 to 5/4/89 and enter the amount.
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There is an exception report for non-commercial lettings restricting the expenses. What does it mean?
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Properties that do not charge a commercial rate for the rent cannot create a loss by claiming expenses that exceed the rent received. If IRIS recognises the property as a non-commercial letting, the expenses will be restricted.
A: Check the type of property is not set to an 'Unfurnished Letting, Nominal Rent' This is set via the Property in the UK. Click on the magnifying glass beside the income type field and select Unfurnished Letting and change to an alternative sub-type.
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Administration
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How is an item on the client account unmatched so that it can be edited or deleted?
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Items flagged with an 'M' have been matched and cannot be deleted or edited unless they are first unmatched.
A: To unmatch an entry, highlight it on the client account and click on the Match button. This will list the items that are matched or could be matched to the selected entry. Highlight the item matched and press the <spacebar> to unmatch it. Click the Save button to save the change.
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Can IRIS print a form 64-8?
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Yes. It is accessed via the edit client details screen in administration or via the central client maintenance screens.
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