IRIS Summer 2022 release v22.2
The IRIS Accountancy Suite Summer release version 22.2 includes all legislative and security updates to ensure your ongoing compliance, including the return of marginal relief for Corporation Tax, an increase in rates for creative tax credits, updates to the Academy Account formats and an update to TLS to improve the overall security of the product.
The release also includes some great new features including further enhancements to the MTD functionality for those taking part in the HMRC Pilot, additional drilldown capability in the SmartTax live tax calculation and a new variant of the Accountants’ report removing any reference to a particular accountancy body.
IRIS Accounts Production
2018 Taxonomy Retirement 1st August 2022
Following the recent retirement of the 2018 Taxonomy the software will automatically apply the latest Taxonomy to unfinalised sets of accounts irrespective of accounting periods. After installation if you do encounter any rejections citing the 2018 Taxonomy, please unfinalise and regenerate the iXBRL accounts and the accounts should then be accepted.
Academies Accounts Direction 2021 to 2022
Updates have been made to Academy Account formats, to accommodate the recently released Academies Accounts Direction 2021 to 2022 for accounting periods to 31 August 2022 with particular attention to the following areas:
- Governance Statement Update – Conflicts of Interest
- Statement on Regularity, Priority and Compliance
- SOFA – Charitable Activity, Teaching School Hub
- Related Party Transactions – Trustees’ remuneration and expenses
Accountants report – new variant
Following this request by a group of customers we have introduce a new variant of the Accountants’ report removing any specific reference a particular accountancy body. This report can be enabled from the data screens for Accountants’ Report and is available for Limited Company / Partnership and Sole Trade formats.
IRIS Personal Tax
Making Tax Digital
In this release we are delivering functionality to allow individuals with foreign property income to be submitted to HMRC on a quarterly basis. We have incorporated this functionality seamlessly into the existing Digital Tax Hub.
Functionality covered for foreign property:
- submission of quarterly periods reporting income and expenses
- submission of adjustments and allowances
- retrieval of live financial position of foreign property business from HMRC
- retrieval and submission of Business source adjustment summary
- submission of End of Period Statement
The digital tax hub has been updated to cater for individuals who need to finalise their financial position once all in year obligations have been met for Self-employment, UK property and foreign property businesses.
The Crystallisation process has a tax calculation integrated reflecting the full financial position of the individual, which is returned from detail held by HMRC, giving the opportunity to review data held by HMRC.
This forever growing MTD process has been incorporated into our easily navigable digital tax hub which guides and prompts you from start to finish, ensuring you do not encounter any blockers along the MTD journey.
Please note if you are interested in joining the MTD pilot or would like more information please contact us at MTD@IRIS.co.uk, we’re happy to help you navigate the MTD journey.
Allocation of allowances drilldown
The SmartTax application has been updated with a new drilldown feature ‘Allocation of allowances.’
The updated functionality allows you to drill in to the ‘Deductions and Allowances’ line item giving a detailed breakdown of the items which contribute to the total deduction and allowance, in addition to this, the feature will also identify what source the allowance has been allocated to; whether its non-saving income, savings or dividends etc.
This feature allows you to ensure that the allowances are being allocated in the most efficient manner, as well as a useful tool to more easily explain how the tax of an individual is calculated.
Tax legislation and annual updates
- Updates to the Dividends databases
- Specials and exclusion updates covering tax years 2021, 2022 & 2023
IRIS Business Tax
Corporation Tax updates 2023
The return of marginal relief! Since April 2015, a single rate of Corporation tax has been applied to non-ring-fenced profits of a company. However, this is due to change, it was announced that from 1st April 2023 the main rate will be increased to 25% for profits over £250,000, along with the introduction of a small profits rate of 19% for companies with profits less than £50,000. With this range of CT rates, we then see the re-emergence of marginal relief for companies with profits between £50,000 and £250,000.
Due to this announcement, we have updated the business tax product for limited companies to calculate profits and automatically apply marginal relief where applicable while taking into consideration associated companies, straddling financial years and any franked investment income that may affect the calculation.
Although marginal relief may be back, the administrative burden of calculating the corporation tax of a limited company remains as simple as before.
Creative Tax Credits
The government has announced that they intend to increase the rates of cultural reliefs for the next two years, with rates for 2023 to 2024 returning to the current 2021/22 levels.
We have updated the business tax | tax credit functionality to ensure that all the latest rates are taken into consideration regardless of the accounting period, the software will recognise where periods straddle rate changes and allow for these claims to be correctly calculated.
Creative tax credit claims will continue to be a feature which is as simple as before while trying to navigate the fluctuating rate changes of the tax credits through the following 3 years.
Tax legislation and annual updates
- Increase in S455 tax to 33.75% from 1st April 2022
- Pre-filing validation warnings for periods falling after 1st April 2022 with either AIA in excess of £200,000 and/or a new loan outstanding on a overdrawn directors loan account
With the summer release, we are enabling the changes we mentioned in the April release for the OLEDB Driver. This will move IRIS off from using TLS versions 1.0 and 1.1 onto solely using version 1.2, improving the overall security of the product.