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
Personal Tax- Period Reform 2024: Farmers Averaging claim for the Transitional period the calculation is incorrect
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 will be fixed in a 24.2. Which is due to be released week commencing 29th July 2024 (subject to change).
In the meantime, please use the work around 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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