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Validation message[SA110:Decrease in tax from adjustment to earlier years]

Article ID

ias-12054

Article Name

Validation message[SA110:Decrease in tax from adjustment to earlier years]

Created Date

13th October 2015

Product

IRIS Personal Tax

Problem

When printing the clients Electronic Tax return the following validation error is generated: Decrease In Tax From Adjustment To Earlier Years Overpaid tax from earlier years has been entered. HMRC require a corresponding entry to explain this. If either a trading loss, property loss or capital gains loss has not been carried back to a prior year, or if there is no averaging adjustment entered; HMRC will reject this Return online. The Return must be submitted by post together with an explanation of why there is overpaid tax from an earlier year.

Resolution

This message indicates that there is an entry in Tax underpaid/overpaid from earlier years, box 14 on page TSC2. HMRC can only process information within box 14 on page TC2 when a corresponding entry relating to a Loss being carried back to a previous year has been entered. Users are required to complete the loss to carry back field: 1. From Trade Profession or Vocation, select Sole Trade or Partnership. 2. Double click the account period end date. 3. Select Adjustments, Losses, Overlap and Tax. 4. Complete ‘To carry back’. Note if a loss is not being carried back users are advised to contact HMRC for further guidance

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