PTP Spring 2023 Full Features v23.1
Overview
The IRIS PTP Suite Spring release version 23.1.0 includes all legislative updates to ensure your ongoing compliance, plus some enhancements based upon your feedback, including an improvement in the speed of generating accounts reports and the introduction of a compliant template for preparing accounts for dormant limited companies and LLPs using FRS 105.
PTP Accounts Production
Report Generation Speed Improvements
We understand that time spent waiting for accounts reports to be produced can seem like an eternity and become frustrating. Over the last 6 months, we have conducted a significant root and branch review of how Limited company accounts (including groups) and LLP reports were being generated by the software with the primary focus on how we could improve the speed of production.
As a result, we have implemented some changes behind the scenes that maintain all compliance and presentation but have significantly improved the time reports are generated, on average by a considerable 47%. This benefit will be felt within all accounting standards and ultimately allow you to spend time on higher value work.
Limited Company and LLP Dormant accounts using FRS 105
We have introduced a compliant template to allow you to prepare accounts for dormant Limited Companies and LLP’s using accounting standard FRS 105. To generate these accounts ensure you have selected FRS 105 reporting standard and then select the ‘DOR‘ report when producing the accounts. When preparing these accounts, we have also included supporting disclosure for companies acting as an agent for a person.
This can be found within the Data Screens, Notes to the Financial Statements, Dormant Only. These accounts can be produced for both HMRC if the Members option is selected or Companies House if Registrar option is chosen. Initially these accounts can only be filed by paper, but we will be looking to include an electronic option in a future release.
FRS 102 – Cashflow Statement (Note 1) Reconciliation of Profit
When preparing accounts using accounting standard FRS 102 and completing a Cashflow Statement, we have introduced a third new option to start the Reconciliation from the Operating Profit value within the accompanying note 1. This updated disclosure can be found within the Data Screens, Cash Flow Statement, Operating Activities, Reconciliation of Profit. It has historically only been possible to start note 1 from either Profit before Tax (T) or Profit for the Financial year (P). By starting the Reconciliation from the Operating Profit (O) improves the flexibility on the note.
We have also applied the appropriate iXBRL tag to ensure accounts that are submitted electronically will also remain compliant. The same functionality has been applied for not only standalone Limited companies but also Groups with consolidated cashflows and LLP accounts formats giving you this new flexibility across the full range of accounts that could require the need for a Cashflow Statement.
Independent Examiner Report update
For Incorporated Charities with gross income above £250,000, we have updated the Independent Examiner report disclosure to now include prescribed wording to match the relevant professional body you are reporting under. We have also allowed for the relevant professional body to be included below the name of the independent examiner signing the report.
We have included the most common professional bodies depending on the country of legislation selected and have updated the website address for the relevant professional guidance. This change can be located in two places on the Data screens from either General Information | Independent Examiner or Auditors and Independent Examiner | Independent Examiner | Name | Professional Details etc. and will only become available for reports signed on or after 3rd April 2023. If you still need to use the original report after that date it will be available under Data Screen for Old Legislation up to 31st December 2023. Finally, the revised data screens can be set to a default level from either Chart, Practice or Partner.
Directors Report Individual’s Pronoun
Following an update made to the client record to allow an individual to have their gender assigned as ‘Other’, within Accounts Production, we have introduced the ability to amend the pronoun in the Directors report for a single director company. A new data screen has been introduced within, Directors, Sole Director Identifying as Other. This will allow a default pronoun of ‘they‘ or ‘their‘ to be updated with a more suitable choice. When applied this will modify the directors report output according to the changes.
Update to the Ratios Report
We have updated the Ratios report so that the information contained within matches the output in the Elements Financial Performance Review (FPR) report. The first is an additional line item for net profit / (loss) after tax and renamed the existing net profit / (loss) to net profit / (loss) before tax. The second is to update the profit ratios in the later part of the report to reflect the same changes (that is, profit before and after tax). Finally, we have included the trade creditor ratio to now bed reported in days. The Ratios report can be produced using the acronym ‘RAT‘.
PTP Tax Return
Legislation updates
Capital assets updates – QAHC
From 2023 onwards, updates have been made to PTP to identify shareholdings from a qualifying asset holding company, with the added ability to select whether the shares are Excluded indexed securities or shares repurchased.
These additional fields can be found within the Capital Gains data entry schedules.
PTP CT Platform
Legislation updates
Associated companies
From April 2023, the main rate of corporation tax will increase to 25% (19% for businesses with profits less than £50,000) and with the reintroduction of Upper, lower limits and marginal relief, naturally we see the reintroduction of associated companies.
The software has been updated to automatically apportion the upper and lower limits based on the number of associated companies entered, which will also impact the calculation of corporation tax and the marginal relief calculation.
New boxes have been added to the PTP product (Boxes 326 – 328) to cater for the reintroduction of associated companies.
CT600L – Research and Development (SME and RDEC Rate changes)
RDEC Rate increase
PTP has been updated to cater for the rate increase of RDEC from 13% to 20%, IRIS will continue to automatically calculate the tax credit based on the expenditure entered.
The software has been updated to cater for all scenarios including those with straddling periods, where the rate will be both 13% and 20% dependent on the date the expenditure was incurred.
SME R&D Tax Credit rate change
PTP has been updated in line with the SME Tax credit rate decrease from 14.5% to 10% along with a decrease in the additional deduction on SME tax credit expenditure which has decreased from 130% to 86%.
All Tax
Capital allowance £1,000,000 AIA limit
In the mini budget it was announced that the planned reduction of the AIA limit to £200,000 from 1st April 2023 would be scrapped, the system has been updated to continue to automatically apply AIA up to the £1,000,000 limit, this has been set in the software to apply to all future accounting periods.
Tax Legislation and annual updates:
- Updated Dividends databases
- Updates to SA100, SA800, SA900, CT600, SA700 and R185 forms
- All the updated reports, calculations and rates for the 2022/23 tax year
- Updates to Capital Allowances
