IRIS Autumn 2023 full features v23.3.0
Overview
The IRIS Accountancy Suite Autumn release version 23.3.0 includes several legislative updates to ensure your ongoing compliance including the new CT600N supplementary pages for residential property development tax. Plus, enhancements to ease the burden of compliance such as features that cater for the Basis Period reform, the option to use an international style balance sheet in FRS101 Accounts and the ability to request e-signatures from other members of the practice when uploading to OpenSpace, read on for more detail.
IRIS Accounts Production
FRS 101: International style Balance Sheet
When preparing accounts using accounting standard FRS 101 historically the software has used a Companies Act style Balance Sheet. Following a request by customers and continuing our drive to give you more flexibility in reporting, we have introduced an option to use an international style balance sheet. Within the Data Screens Balance Sheet, Options, FRS 101 – Options, at the bottom of the screen we have introduced two new tick options.
- the first ‘present Balance sheet in IFRS layout (rather than Companies Act layout)’.
- the second to ‘show Balance Sheet totals in the order Assets – Liabilities – Equity’.
As part of this update, we have amended the group names so when previously referring to trade debtors, these will be shown as trade receivables and similarly for trade creditors these will be shown and trade payables. These changes will also be reflected in the corresponding reports and notes to the accounts. If you wish these to be reflected the name changes in the account descriptions these will need to be amended manually at either chart or client level.
Finally, we have included the appropriate iXBRL tagging to any new reports or notes to allow you to continue to produce and submit these accounts electronically to both Companies House and HMRC.
IRIS Personal Tax
Basis Period Reform – Transitional Profits for Sole trades
The government announced the basis period reform which is a change in the way trading income is allocated to tax years rather than basis periods for self-employed traders, partnerships, and trusts.
This change is due to come into effect as of April 2024, for accounting periods that do not align with the tax year, a transitional profit will be calculated to align to the tax year, with all overlap relief being given.
Businesses who draw up accounts that align to the tax year will not be impacted by this realignment.
The reform has introduced a spreading provision to ease the impact of any additional tax charges on the additional profits attributed to the 2024 transitional year. Transitional profits will spread over five years starting from the 2024 tax year.
We have started to update the IRIS personal tax product, to assist you with navigating the legislative change, starting with sole trades for individuals, with partnerships and trusts to follow shortly.
IRIS Personal Tax will automatically calculate the transitional profits of a sole trade business with which the accounting period does not align to the tax year. The data entry will display an in-depth calculation of the steps taken to calculate the ‘apportioned transitional profits’ (20% spread) for the 2024 tax year, along with automatically apply any outstanding overlap relief and giving the ability to accelerate transitional profits. The corresponding computations will be updated to reflect these calculated values in a following release.
In addition to the above we have implemented a transitional profits audit tracker, which will identify the amount of transitional profits arising, taxable and carried forward removing the necessity of manual tracking, this is all cater for within the software. This audit will also automatically update where the transitional profits have been accelerated.
IRIS Business Tax
CT600N –Residential property development tax (RPDT)
HMRC have released a new supplementary form (CT600N) to support the new supplementary charge that has been imposed on profits earned by corporates from the development for sale of residential property.
The tax is limited to the largest residential property developers by each group having an annual allowance of £25million, with only profits from residential property development activities above this amount being subject to tax, RPDT is charged at 4%.
We have updated IRIS business tax to cater for all functionality required to successfully complete the CT600N and declare any RPD and any associated tax.
Functionality for CT600N will appear for accounting periods that straddle the 1st April 2022. This can be accessed by the ‘Residential Property Developer Tax (CT600N)’ folder on the treeview along with following options and functionality:
- The allocation of the 25 million allowance for the group can be entered to complete the allocation statement via: Residential Property Developer Tax (CT600N) | Allocation Statement.
- Joint venture companies’ information can be added via: Residential Property Developer Tax (CT600N) | Joint Venture Companies.
- Group claims or surrenders of RDP Income or Losses can added via: Residential Property Developer Tax (CT600N) | RPDT Group and Consortium.
- The Summary screen can be used to enter the RPDT profit or loss and view the final Tax charge via: Residential Property Developer Tax (CT600N) | Calculation of RPD Profits and RPDT Payable.
Full Expensing
It was recently announced by the government that from April 2023 until the end of March 2026 companies can now benefit from full expensing, which offers 100% FYA on new main rate plant & machinery and 50% FYA for new special rate assets.
The IRIS Business tax product has been updated to easily identify the assets under the corresponding relief claim from which the software will automatically calculate, track and report on the necessary supporting documentation.
All Tax
Tax Legislation and annual Updates:
- Updated Dividends databases
- Updated to reflect the latest specials and exclusions
- Updated the latest R40(M) Form
- Updated the latest HMRC CT Taxonomy 2023
IRIS Core
Request e-signature from Staff Members when uploading documents to OpenSpace
With the new release of IRIS Accountancy Suite, you can now request an e-signature from another member of your practice when uploading to OpenSpace from IRIS Accountancy Suite.
This great functionality will allow streamline your document generation, upload and e-signature request process by doing it all within IRIS Accountancy Suite.
