Personal Tax- Period Reform: Sole trader changed to partnership, should not calculate transitional profit/tax

personal-tax-period-reform-sole-trader-changed-to-partnership-should-not-calculate-transitional-profit-tax

Personal Tax- Period Reform: Sole trader changed to partnership, should not calculate transitional profit/tax

6th January 2025

IRIS Personal Tax- Period Reform: Sole trader changed to partnership, should not calculate transitional profit/tax

This was a DEFECT with IRIS Version 24.3.2/24.3.0 where a Sole trader changed to partnership in the 2023/2024 period and it still calculates the transitional profit/tax when it should not calculate transitional profit/tax (should also not split the profit over 5 years etc). The partnership income should be showing up in the SA100 and the Tax comp normally under trade.

This is fixed with the IRIS version 25.1.0 in April 2025.

We apologise for the inconvenience.

Workaround – please enter the partnership business as a ‘new’ partnership starting in 2023/2024 so it will show as normal trade income and not calculate any transitional profits. Then under Reliefs/additional info/SA100- add a note here. Once we have released a fix then update your version and check the tax comp calculation again as you may have double the Partnership income showing, if it has then you can then delete that newly added partnership.