IRIS Spring 2024 Full Features v24.1.0
Overview
The IRIS Accountancy Suite Spring release version 24.1.0 includes all legislative updates to ensure your ongoing compliance, plus some enhancements based upon your feedback, including; a new report layout for Doctors accounts, a data screen option to allow ‘cash and cash equivalents’ for FRS 101 and 102, updates to cater for the change in basis periods.
- IRIS Accounts Production
- IRIS Auditor
- IRIS Company Secretarial
- IRIS Personal Tax
- IRIS Business Tax
- All Tax
- IRIS Core
IRIS Accounts Production
Update to Doctors Accounts
A new alternative report layout based on the AISMA example accounts is available for the EMED chart. This is selectable via an option in a data screen. For consistency and to create accurate accounts with comparatives, a duplicate posting entry must be created for last year and amendments must be made utilising the new account codes.
To accommodate this alternative layout:
- new account codes and groups for the have been introduced.
- several new accounting policies have been added.
- new notes are included: Share of net medical income; Statistics; Drawings.
LLP SORP 2024
In the Report of the Members, the Potential Impact of the Euro data screen has been repurposed for freeform use. No further changes were required.
Guernsey Accounts
When Guernsey is selected as the country of legislation, the Statement as to disclosure of information to auditors will now appear by default in the directors’ report.
Cash and cash equivalents – for FRS 101 and FRS 102
A new option has been included to select reference to ‘Cash and cash equivalents’ for FRS 101 and FRS 102. A data screen option has been added to allow the term ‘Cash and cash equivalents’ to show in reports where otherwise ‘Cash at Bank/Cash in Hand/Cash at Bank and in Hand’ would appear.
Other comprehensive income – Statement of Changes in Equity
Changes in the wording from ‘Other comprehensive income’ in the Statement of Changes in Equity to ‘Other comprehensive income/(loss)’ allows for more flexibility and caters for both positive and negative amounts.
FRS101/FRS102 – New Reduced Disclosure Requirements
New reduced disclosure exemptions introduced by the FRC in July 2023 are reflected in the data screens and in reporting.
IRIS Auditor
Minor amendments have been applied to the Auditor templates. They will appear for any account period starting on or after 15/12/2022.
IRIS Company Secretarial
The latest LLCS01 and LLAD01 paper forms have been updated in line with updates issued by Companies House due to the Economic Crime and Corporate Transparency Act 2023 changes.
The ERS template has been updated to the run the latest tax year 2023/2024, as required by HMRC.
IRIS Personal Tax
Legislation updates
Basis Periods
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.
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.
To cater to this, from 2025 onwards updates have been made to IRIS Personal Tax to tax business profits and losses on a ‘Tax Year Basis’ rather than ‘Current Year Basis’ for individual tax returns.
There will be a transitional year in tax year 2024 which will include the standard profits and the transition profits up to 5th April 2024.
- Transitional profits apply to Businesses that do not have 31/3/to 5/4-year end.
- Basis period will run from the beginning standard accounting period that falls within the year and ends to the 5th of April 2024
- The basis period profits are split into standard part and transition part.
- Once transition profits are realised (using calculation) the transition profits are apportioned to 20% and each 20% is spread over the next 5 years. You can choose to pay more in the current year and the rest will be carried forward and re-calculated in the next year.
- Based on HMRC legislation, IRIS will automatically utilise all overlap relief with nothing to carry forward to 2025.
- The Overlap is first used against the transition part.
- If Overlap creates a loss, then these can be treated as a terminal loss and be carried back. You can use the ‘carried back’ field for this.
A new screen can be found in the Trading section of all supplementary forms affected, to cater for the above changes.
Resolved issues:
- ‘Registered for VAT’ option in client details was not always initializing the corresponding Include/Exclude VAT option in Trade Business Details.
- When ‘Outside Europe’ or ‘Europe’ has been selected for the ‘Pension paid from’ Field in the other pension data entry screen, then the amount entered in the Gross pension received field, was being incorrectly reduced by 10% in the income section of the tax computation and on the tax return.
- Personal Tax was crashing on retrieving HMRC data.
IRIS Business Tax
Legislation updates
Full Expensing
In the Spring Budget 2023, the government introduced two new temporary first-year allowances. For qualifying expenditure on the provision of plant or machinery incurred on or after 1 April 2023 but before 1 April 2026, companies can claim:
- a 100% first-year allowance for main rate expenditure — known as full expensing
- a 50% first-year allowance for special rate expenditure
Recently it was announced that Full expensing would become a permanent allowance available for capital allowances
HMRC have provided a new field on CT600 to cater for full expensing claims. Iris Business Tax has been updated to map these fields.
Energy Levy
IRIS has been updated to cater for the new boxes on the CT600 relating to the energy Levy.
New boxes can be found within the ‘Energy (Oil and Gas) and electricity generator Levy’s’ tree view item and within the calculation of Tax outstanding or Overpaid section.
Research and Development expenditure credit (RDEC) claim Validations
HMRC introduced box 657 on the CT600 from April 2023. This box can only be completed within the software when there is SME enhanced expenditure or SME R&D Tax credit claim being made and not when claims to R&D Expenditure Credit is being made by a Large or SME company.
HMRC Validation below is being removed from April 2024 (RIM Artefacts v1.992)
- Error 9283 — Box 655 can only be completed if at least one of the boxes 670 or 680 is greater than 0 (zero).
HMRC validation below is being removed in April 2025
- Error 9281 — Box 650 can only be completed if at least one of the boxes 670, 675 or 680 is greater than 0 (zero).
To cater to the above Iris has been updated to map the printed CT600 for Large and SME company RDEC claims for completing boxes 650, 655, 656 and 657 and by Incorporating a pre filing validation in RIM Artefacts v1.992.
Resolved issues:
- when claiming or surrendering Group relief and adding a company to Group and Consortium screen the tax reference number on CT600 UI was not being displayed in the table for the other company.
- when there is a long accounting period with 2 CTAPS, when looking at CTAP2, the Notional tax brought forward was calculated incorrectly for the 2nd CTAP.
- Business Tax was throwing a ‘The Input is not a valid base 64 string as it contains a non-base 64 character, more than two padding characters or an illegal character among the padding characters’ error when attempting to generate clients tax returns.
- BLOCKED R&D adjustment was not showing correctly on the Tax computation.
All Tax
Tax legislation and annual updates
- updated Dividends databases
- updates to SA100, SA800, SA900, CT600, SA700 and R185 forms
- all the updated reports, calculations and rates for the 2023/24 tax year
- updates to Capital Allowances
IRIS Core
Elements Sync Control Panel – Non-Client Control
We are continuing to enhance the controls users have over their synchronised data with their Elements account. As part of this, we have now added the ability to control which non-client records are synchronised with Elements and which aren’t.
