The IRIS knowledgebase seems to be unworkable and I haven't got time to search the 250 pages item by item so I'm posting here.
A very straightforward 2013/14 Tax Return -
Taxpayer has a UK property and the screen version of UKP2 shows: b/f loss of £16,772 (UKP2 Box 39), net income of £4,134 (UKP2 Box 38) and c/f loss of £12,638 (UKP2 Box 43). UKP2 Box 40 is not blank but shows a 0.
The electronic version refuses to validate and gives the error message:
"The amount in box [SA105:Taxable Profit For The Year] must equal([SA105:Adjusted Profit For The Year] minus [SA105:Loss Brought Forward]). Please check."
Is the'0' in UKP2 Box 40 the problem ? Any suggestions please on how to achieve successful validation ?
Replies (15)
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Call IRIS Support
... on 0844 815 5551.
I would tell you the current wait time on Personal Tax, but we have just installed v11.6 and I cannot get beyond the New Features screen!
The only KB article I could find was this one from 2008 - does that help?
Box 39 should contain the b/fwd losses actually used, not the total brought forward loss available (i.e. it should never be more than box 38). I don't know IRIS but can you amend the figure in box 39 or is it computed?
You should really be looking for:
box 38 = 4134
box 39 = 4134
box 43 = 12638
I don't think it matters whether box 40 is zero or blank (Taxfiler leaves it blank).
We are running IRIS 11.5.1 and I have a similar case but I have no entry in Box 40 on UKP2. May I suggest that if you have pence in any of your figures you remove those so that all your entries are in whole pounds and then try again. Sometimes pence confuses IRIS.
My figures read as follows:-
Box 38 - £1,437
Box 39 - £2,281
Box 40 - no entry
Box 43 - £844
Losses more than profit
Trish the way you are doing it means more losses are being used against profits than profits available which isn't possible.
Box 38 is your net profit
Box 39 is NOT losses brought forward - it is the amount of losses used against your profits. Box 38a is used as a place to put your brought forward figure for calculations.
Your thing is exactly same as OP
Box 38 - £1437
Box 39 - £1437
Box 40 - £844
Paul - that is the way that IRIS shows it automatically - I don't have a Box 38a on my page UKP2. I have just checked on the HMRC website and their copy of the UK Property pages doesn't feature a Box38a either. I confess that your comment panicked me slightly so I had to double check.
When I look back at previous years for this client, the UKP2 entries have all been similar, albeit that she will in all likelihood use the balance of the losses brought forward in the current tax year. I have checked other clients who have rental properties that run at a loss and the entry in Box 38 is always the full amount of the losses brought forward.
My return has been successfully submitted to HMRC.
Weird
That's not how I learnt to do box 39 but after reviewing hmrc notes they do say use the full losses figure brought forward so you are right!
In that case I don't know what the problem is with OP other than the fact that box 40 shows a 0 instead of being blank.
As I said earlier, IRIS fills in the boxes automatically and I have never really questioned it. The only thing I can think of is that the OP has pence in his figures which might mean that although the entries on the page (in whole pounds) look correct, 'behind the scenes' there are pence which means that there is rounding going on and that may well upset IRIS.
Iris 11.6.0 and property losses
I have just returned from holiday this morning to find this huge issue with Personal tax. They do have a work round - fiddle the answer so that there are no losses to carry forward and fill in what you have done in the white additional information box. The fix will not be out for a month according to the support people. They also suggest that you rerun the returns when the fix comes out. Who has time to do that.
Rerun the returns
I think it's imperative that you do that otherwise you may have problems next year.
I know it's a nuisance. I'd try to avoid doing personal tax returns with property until they fix it.
November update
I know it's a nuisance. I'd try to avoid doing personal tax returns with property until they fix it.
Agreed. When we hit the problem, IRIS told us that it would be fixed in the November update - presumably, the 11.6.1 service pack - so we are waiting until then before filing any IT returns with property losses brought forward.