Accounts Analysis
We have resolved a display issue on the Profit and loss account report statement whereby certain rows, such as Management expenses and Interest payable, were omitted from the report in the rare scenario where a minus £1 was entered for one row in combination with another being printed, which would cause an element of our display rules to cancel out. As this was a presentational issue only, we have addressed this without an application date.
We have corrected a narrative issue in respect of the conditional reference to gains or losses used on the Profit and loss account report statement where the Gain/(loss) on investments or Gain/(loss) on disposal of fixed assets rows were used, which are available for charity computations only.
Following a user request, we have now added additional options to the tax categoriser that will link a total on any analysis statement to the statement total in the Other assets capital allowance statement within the computation. Previously you could only tax categorise on a row-by-row basis which in some cases could involve having to create a large number of the same links.
We have addressed an issue which would cause the Cost and Depreciation sections to display instead of the NBV section on the Finance lease receivables statement. This occurred where the Enter NBV for Finance lease receivables? flag, on the Accounts analysis options statement was changed to Yes in an earlier period. As this flag is initialised, changes to an earlier period do not have an effect in the subsequent period.
The flag was incorrectly hidden in this scenario and therefore could not be set back to Yes in the subsequent period. The flag will now be displayed to allow it to be manually set to back to Yes.
Tax Accounting
Overall proof of tax charge
• We have improved the presentation of capital gains differences in the Overall proof of tax charge report statement. The deferred tax implications of postponed gains and revalued capital assets were previously included along with capital gains or losses as a single proof item, which could make the breakdown and cross referencing unclear. With effect for periods of account ending on or after 30 June 2020, these amounts have now been separated into three distinct rows on the proof.
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We have resolved an issue in the Fixed asset differences section of the Overall proof of tax charge report where a company has a long period of account with differing translation rates between each accounting period, and there is a transfer of postponed first year allowances or writing down allowances in the ships capital allowances statements. The corresponding proof item was being translated at the exchange rate for the first accounting period as opposed to the second.38
IFRS deferred tax balance sheet
• We have addressed an issue on the balance sheet statements relating to insertable rows in periods where the Restate opening values? configuration option is in use. Where a new row is created in the restatement period and the row-level opening rate input is not used, the opening provision rate was being calculated as nil which would lead to an incorrect rate change adjustment on the Overall proof of tax charge report statement.
The opening rate for the company will now be taken in these scenarios
• In response to a minor presentation issue raised by a customer whereby the CIR-related Disallowed tax-interest expense row was not being shown on the IFRS deferred tax balance sheet when the provision was fully not recognised, we have now amended the display rules across this report to ensure that rows are displayed whenever they contain a relevant value.
The same change has also been made to the display of balance sheet insertable row opening and closing amounts returned on the Overall proof supporting calculation report statement.
Miscellaneous tax accounting changes
• For computations where tax accounting is in use, we have amended the Corporate tax payments input statement such that existing rows with a payment brought forward from the prior period will be locked, meaning that a current period payment may not be made on the same row. The rationale is that the Tax account summary uses the date of the payment for the purposes of determining the period in which the payment falls. Current period tax payments should be entered on a new row.
• Following a user suggestion from the Tax Systems idea portal, we have added a note to the Analysis of prior period current tax input statement to explain why new rows may be created for prior periods in the first period of an Alphatax computation. We have also fully updated the associated Help page.
• Following a further user enhancement request, we have introduced a new option in the accessory statement for the trade Income adjustments and Expense adjustments input statements which allows the default, sign-based treatment in the reconciliation to be reversed. Positive income adjustments are returned as Income not taxable for tax purposes but the new flag can be used to move these amounts to be negative Expenses not deductible for tax purposes, and vice versa for expenses and for negative
adjustments. This setting might optionally be used for example where an income adjustment reflects a reversal of a previous expense adjustment.
• Following a user request we have introduced a new column for Other movements on the Tax account summary statement. This column features an override-able column heading and can be used to enter any other movements that may be relevant.
• Tax adjustments entered on the Adjustments analysis statement affect the trade Accounts adjustments report, however the total of these amounts is not specifically shown in the computation. The Overall proof of tax charge does refer to this total however, and so in some cases it can be difficult to reference this amount back to the computation.
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We have accordingly introduced a new flag Enable breakdown of total trade
adjustment - overall proof of tax charge on the Tax accounting options configuration options statement. This will then show the breakdown of the amounts entered on the accounts Adjustments statement for the trades on the Overall proof of tax charge report.
• We have added a missing cross reference from the Deferred tax not recognised row in the Reconciliation of tax charge section of the Tax charge per accounts report
statement to the Deferred tax provision report statement.
• Further to the similar changes recently being made on the Tax account summary statement, for translation mode computations we have now introduced a Display exchange difference column in report mode? flag to the Gross timing differences input statement. Setting this flag to Yes will prompt Alphatax to include an additional column on the report statement which returns the amount of the movement in the period which relates to exchange differences. This option can be used to assist in understanding the Deferred tax exchange difference arising on movement between opening and closing spot rates row on the Overall proof.
Group
Group excluding options
The definition of which companies are included in a “group” varies depending on the area of the taxes acts being considered. To clarify this position, we have now added a new Excluding options statement that sits under the Membership details statement within the Group module. This statement will offer users control of which companies appear in the different sections within the Group module. Certain existing input controls that previously appeared on the Membership details statement have been moved to this new statement as part of this review.
We have brought up the Supply copies of notice of consent to surrender (group relief)? and Supply copies of notice of consent to surrender (group relief for carried forward losses)? flags from company level to the Group module as per a user request. These options can be found on the Membership details statement. This will allow users to post down their selections from group to company level.
Tax accounting
In this version of Alphatax we have added the option for users to be able to insert their own custom rows on the Reconciliation of tax charge (per accounts) section in the Tax accounting configuration options statement in group. Once the narrative is populated this will be posted to all the company computations on the Reconciliation of tax charge statement and the user can then assign amount for each company. Upon refreshing the group computation, the company entries will then be brought up into the correct rows.
Following a user suggestion, we have enhanced the way profit and tax numbers are entered for non-Alphatax companies for the start of the reconciliation on the Tax charges statements and the Overall proof of tax charge statement. A new Corporation tax rate input now allows Alphatax to derive these amounts from a single profit or loss entry with the remaining, existing inputs moved to become overrides on the non-Alphatax company input statement.
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We have introduced a Consolidate insertable adjustment columns in report mode?
flag to the Tax accounting configuration options input statement which may be used to prompt Alphatax to consolidate any entries in the insertable adjustment columns into a single column in report mode. This may be beneficial where the granularity of having more than one column in input mode assists with ensuring that adjustments are entered correctly, but where this level of detail is not required in report mode.
We have addressed an issue on the Overall proof of tax charge statement whereby a consolidation adjustment entered for the Tax on profits at the average rate or Actual total tax charge rows was incorrectly being included in the adjustment total for the Fixed asset differences section of proof items.
We have improved the display of the accounting bases for tax accounting diagnostics that were potentially providing users with confusing information on how to resolve.
Diagnostic ID 6 will appear when group companies use a mixture of the IFRS DTBS and the gross timing differences approach for deferred tax. Diagnostics ID 7 or 8 will appear to make sure the corresponding group level tax accounting flags have been set.
Diagnostics 60 and 61 have been removed in this release as they were duplicating information already presented.
Report designer
• The CT600 Capital Allowances Summary report template has been updated to include the new boxes for first year allowances claimed on zero emission cars.
• We have resolved a level issue when reporting on partnership statement trade profit or loss allocations per partner through the Report designer wizard.
• For SQL reporting, we have addressed an issue with the way the effective tax rate ddname (eff.tr) is stored such that the numbers after the decimal place are now saved correctly.