IRIS Summer 2024 Full Features v24.2.0
Overview
The IRIS Accountancy Suite Summer release version 24.2.383 includes updates to the Academy Account formats, including the new conclusion section to the Governance statements and updates to the FRC 2023 taxonomy. Basic period reform updates to Personal and Trust tax as well as updates to accommodate changes resulting from the merger of SME tax relief and the Research and Development Expenditure Credit (RDEC).
IRIS Accounts Production
Academies Accounts Direction 2023 to 2024
Updates have been made to Academy Account formats, to accommodate the recently released Academies Accounts Direction 2023 to 2024 for accounting periods to 31 August 2024. These include the introduction of a new conclusion section to the Governance statement.
An update to the Staff costs and employee benefits note to allow for separate disclosure of ‘Other employee benefits’ this can be disclosed by using a new chart code (498).
Finally in update to the Pensions and other obligations note, we have adopted new standard wording around the Valuation of the Teachers’ Pension Scheme. This continues our commitment to bringing the latest compliance.
FRC 2023 Taxonomy
We have applied the latest Taxonomy issued by the FRC and HMRC for 2023. This will give qualifying accounts formats access to the most current iXBRL tagging to support electronic filing requirements for both Companies House and HMRC.
IRIS Personal Tax
Basis Period Reform – Personal Tax and Trust Tax
IRIS has been enhanced to accommodate Sole Traders and Partnerships that have extended their accounting periods to align with the end of the Tax Year. Henceforth, both Standard and Transition profits are calculated based on these extended periods.
High Income Child Benefit Charge
IRIS has been updated to cater for the High Income Child Benefit Charge (HICBC) changes effective for the tax year 2024/25.
Revised Income Thresholds:
- The income threshold for HICBC has been increased to £60,000 for the tax year 2024/25. A £60,000 limit has been incorporated at which point the calculation is invoked.
- Taper band has been increased from 10,000 to 20,000 – 1% of child benefit will be clawed back for each £200 of income above the threshold.
- Computation report has been updated to reflect the same.
Increased VAT Registration Threshold – Personal Tax and Business Tax
The VAT threshold for both Personal Tax and Business Tax will be increased from £85,000 to £90,000, effective from April 6, 2024. Businesses with a taxable turnover exceeding £90,000 in a 12-month period are required to register for VAT.
Class 2 NIC updates
IRIS has been updated to cater to the Class 2 National Insurance Contributions (NICs) Updates for 2025.
Calculations have been adjusted to reflect the following:
- Self-employed individuals with profits above £12,570 will no longer be required to pay Class 2 NICs for 2024/25 onwards.
- Self-employed individuals with profits under £6,725 and others who pay Class 2 NICs voluntarily to get access to contributory benefits will continue to be able to do so. The weekly rate paid will remain at £3.45 for 2024-25 (£4.10 for share fishermen).
- The Small Profits Threshold has been frozen at £6,725.
IRIS Business Tax
IRIS has been updated to accommodate changes resulting from the merger of SME tax relief and the Research and Development Expenditure Credit (RDEC), effective for accounting periods starting on or after April 1, 2024.
Key Features of the Merged Scheme:
- Integration of RDEC and SME R&D Tax Credits – the scheme consolidates RDEC and SME R&D tax credits, facilitating streamlined claims.
- Shared PAYE & NIC Cap – the cap on PAYE and NIC liabilities is now shared between RDEC and SME R&D claims.
- Updated Notional Tax Calculation – Notional Tax withheld is calculated based on the appropriate tax rate for each company’s chargeable profits. Loss-making companies utilize the Small Profits Rate of 19%.
- Enhanced Data Entry – the Research and Development data entry interface now includes an Additional Information tab. This tab allows users to input details of PAYE and NIC liabilities, including those of connected companies.
- Automated Allocation – the system automatically allocates the maximum cap available to SME Intensive Relief and RDEC claims respectively, ensuring accurate and efficient processing.
Updates to CT600 Forms
IRIS has been updated with the latest CT600 Forms.
IRIS Trust Tax
Schedules of Data
IRIS has been updated to cater for the reports for Basis Period reform for Sole Trades for SA901 and Partnerships for SA902 by updating the Schedules of Data.
The following changes have been made to reflect the same:
- Basis Period end date has been changed to 5th April 2024
- A new row ‘Transition profit treated as arising in tax year 2023/24’ has been added
- A new row ‘Loss brought forward from last year used against Transition Profits’ has been added
- Description has been amended with ‘Loss brought forward from last year used this year’ row to ‘Loss brought forward from last year used against year’s profits’
All Tax
Tax legislation updates:
- Dividends Database has been updated to reflect the latest Dividend Declarations
