Personal Tax- Period Reform 2024: Farmers Averaging claim for the Transitional period the calculation is incorrect

Article ID

iris-personal-tax-farmers-averaging-claim-for-the-transitional-period-the-calculation-is-incorrect

Article Name

Created Date

3rd July 2024

Product

Problem

IRIS Personal Tax- Farmers Averaging claim for the Transitional period the calculation is incorrect.

Resolution

IRIS Personal Tax is currently using the standard period profit and taking off the overlap relief and then averaging the figures. This is not correct the overlap relief will only be taken into consideration after the transitional profit has been calculated.

This has been confirmed as a DEFECT within the software IRIS Version 24.1.9.2, and fixed with the August Version 24.2 which is currently available.

There is also a workaround below:-

In the Sole trade section go to the Adjustments, Losses, Overlap and Tax tab
Go to the row “Adjustment for farmers’ or creative averaging” and untick the box to use IRIS figures
Enter the expected amount within the field
Go to Reliefs | Miscellaneous | Tax Calculation | Tax Code and Overpaid, Underpaid and Repaid Tax
Enter the Tax Adjustment with “Tax underpaid(-ve)/Overpaid(+ve) from earlier years field

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