Business Tax: Partnership Trade Computation correct but the Tax Return is wrong/missing data (Also not use AP)

business-tax-partnership-trade-computation-correct-but-the-tax-return-is-wrong-missing-data

Business Tax: Partnership Trade Computation correct but the Tax Return is wrong/missing data (Also not use AP)

11th November 2021

IRIS Business Tax: Partnership/LLP Trade Computation is correct but the Tax Return is wrong/missing data.

1. Load the client and select the relevant period
2. Go to ‘Trades’ at the top of the screen
3. Partnership, Overwrite/Leave – set this from NO to YES and OK
4. IF it was already set to YES then switch to NO instead
5. Run the trade comp to ensure its correct and then run a Draft Tax Return.

This KB also covers the issue if the Tax comp is empty and tax return shows the values – run the steps above and below:

The majority of partnerships and LLPs in BT looks for data directly from Accounts Production- the YES setting says to look for the AP data.

Switching to NO – means to look for manual entries made in BT (and no longer from AP). This is usually used to made adjustments/corrections in BT without modifying AP data.

If the Tax return is still incorrect after you made this edit then check the Page PL2 box 1.38 and 1.39. Is box 1.38 totaling up correctly? if not then it will affect the calculation in box 1.39 giving a incorrect profit. Try these steps if you have any Property income:

1. Trades/Partnerships/Overwrite-Leave Alone – set to ‘No Leave Alone’
2. Land and Property – Furnished Holiday Lettings – Tax adjustment – press F8
3. Land and Property – Other Property Income – Tax adjustment – press F8.
4. Now run the Trade comp and then Draft Tax Return

If you do not use AP and enter data directly into BT:

1) Create client as a partnership in BT – add in the relevant values and check if it shows on BOTH tax comp and return. The tax comp data is added via Edit and ‘Postings’ including the year end date (you may only see THREE options, these are the only ones available so fill them in) , AND then the Tax return is added via the left side yellow folders. So TWO areas must be completed
2) Then go to trades/overwrite leave alone option and tick NO (eg not pick up data from AP), then run both, comp and return.