Personal Tax- Period Reform: Changed to Partnership OR Sole Trade, get ZERO Transitional Profits, why?

personal-tax-period-reform-sole-trader-changed-to-partnership-get-zero-transitional-profits-why

Personal Tax- Period Reform: Changed to Partnership OR Sole Trade, get ZERO Transitional Profits, why?

15th January 2025

Personal Tax- Period Reform: Changed to Partnership OR Sole trade, get ZERO Transitional Profits, why?

This is a DEFECT- If you have Sole trader which has changed to a Partnership or a Partnership which has become a Sole trade (for example look at the Related/Involvements/ Partner name/ FROM involvement date or a ceased date against the ex-partner) then there is a issue where it calculates ZERO Transitional Profits on the Trade comp and Tax comp/SA100, and you expected the profits to show on step 2) on the Transitional summary screen.

It may also cause the Partnership or Sole Trade income to not show on the Tax comp/SA100 (As it will show as normal trade profit and not as Transitional profit)

This is being investigated by the IRIS Development team and a planned fix is to be released in version 25.1.0 in April 2025 and we apologise for any inconvenience.

Workaround if it has changed to a Partnership: If your client has no prior sole trade income and you are ok to submit with no partnership ‘from’ dates on the SA100. If your client has prior sole trade income then we recommend you do not apply this workaround and await news of the HOTFIX

Load the Client and 2024 year, open the Partnership name at the top of TPV
Related tab
Involvements button
Highlight the partner and view
Note the ‘FROM’ date and remove/delete it and OK
Go back to the main income screen
Open the 2024 period
At the bottom – the Transit periods 2023/24 – if its empty – click the mag glass
UNTICK step 5
Ok
At the bottom – the Transit periods 2023/24 should be populated with profits
Run the Trade comp and the Tax comp – will now show the transitional profits etc 

You can add a Note under Reliefs/Misc/Additional info SA100 and submit online. Once its fixed you can submit an Amended tax return later on so it adds back the missing Partnership FROM Date etc.