CCH Personal Tax 2022.3: Release Notes
Overview
This release of Personal Tax includes the following:
- Capital Allowance Engine for Freeport Structures and Building Allowance and Zero Emission Cars
- Updated Information Request templates for 2023
- Addition of the IRmark field to the data dictionary for use in Tax Return Transmittal letters
- Updated Exclusions
- A few quality Improvements
Details of these and other changes are included in these release notes.
Prerequisites
This release is installed using the Central Suite Installer. This ensures that all prerequisites are in place and that all the products for which you are licenced are installed in the correct sequence. Click here to learn about the Central Suite Installer.
Legislative & Compliance Updates
Updated Capital Allowances
Following the release of the 2022.1 version of Personal Tax, we have updated the Capital Allowances engine for 2023 onwards for Zero Emission Cars and Freeport Structures and Buildings Allowances.
Note: We have not changed the 2022 Tax Returns for these items as entries may already have been made and we do not wish to overwrite the entries already made.
From the Capital Allowances data entry screens from 2023 onwards, the Capital Allowance types 100% FYA Zero emission cars and Freeport Structures and Buildings Allowance are now hyperlinked:
To enter details of any claims. Click on the hyperlink and add details of the asset as you would do for any other Capital Allowance claim. These have been added to all relevant forms and data entry screens.
Note: When claiming Freeport Structures and Buildings Allowance, please rememeber to add a note detailing the date the asset first becomane eligible for allowances, the original cost and also details of the relevant Freeport.
Software Enhancements
Online Filing - Security
Following a review of the security associated with Online Filing credentials we have implemented the enhancement:
Tax System Parameters - Online FiIing Details
We have added a task permission to the Online Filing Details tab from the Maintenance > Tax Settings > Personal Tax > Tax System Parameters menu. Where a user currently has access to Tax System Parameters the Online Filing details tab is still visible. To satisfy internal security requirements this can now be switched off at group level.
Updated FTSE350 File
An updated file for the FTSE350 is included in this release; users reported an issue with the Morrisons Supermarkets shares, our data supplier has provided an updated file.
Zoom Options
In the 2022.2 release of CCH Personal Tax, additional stepped options were included. When reviewing these options, it was not always possible to identify the ‘border’ on the page. This has been updated in this release.
IRmark - Data Dictionary
A new item, IRmark, has been added to the Data Dictionary. This enables you to include details of the IRmark in your Tax Return Bundle letters.
Note: Due to the cyclical nature of the IRmark generation, please do NOT add this to Disclosure Notes.
Updated Exclusions
HMRC has recently issued an updated Exclusions document in which the formula for identifying Exclusion 121 was updated and a new exclusion 137 was introduced.
|
Exclusion ID |
HMRC Description & Details |
WK Action |
|
121 |
HMRC has reinstated this Exclusion for 2022 returns. A customer who has income within the higher rate band will be affected where their non-savings income is less than their reliefs/allowances, their savings income above the starting rate band, and their dividend income above the dividend allowance. For some customers the calculator is currently setting their allowances against the dividend income where it is more beneficial to set them against the savings income. |
We have coded the updated criteria to identify this change. |
|
137 |
Where a customer remits to the UK in 2021-22 dividends that were first received between 5 April 2008 and 6 April 2016, they may qualify for the dividend tax credit. An entry will be made in FOR7.5 of the taxable amount of the qualifying dividend that had been included in FOR7.4. Where customers have an amount in FOR7.5 and the grossed up amount of FOR7.5 is greater than the amount of non-savings income brought into charge, their tax credit will need to be restricted. S397A ITTOIA 2005 reduces the tax credit where a customer’s income is reduced by any deductions that are made from the dividend. Currently the SA calculator does not account for any deductions and so the dividend tax credit is not restricted. |
The mnemonic provided by HMRC contained flaws, we have reported this to HMRC . CCH Personal Tax has NOT been updated for this exclusion. The number of cases affected is expected (according to HMRC) to be very small. |
Updated Information Request Templates
We have introduced new Information Request Templates for the 2023 tax return season; these include details of any expenses claimed for rental income properties, both UK and Foreign. We show the total expenditure incurred for each category e.g., Rent, Repairs, Legal etc. For the sake of consistency, we have provided a full set of templates this year, all are prefixed 2023. The templates are:
- 2023 – CCH Information Request New Client
- 2023 – CCH Information Request No PY Details
- 2023 – CCH Information Request PY Details
- 2023 – CCH Trust - Information Request No PY Details
- 2023 – CCH Trust - Information Request PY Details
Note: With the changes to the template, the Income value declared is after the expenses have been deducted. In the above examples the Income amounts are £5,000 £10,000 and £15,000 accordingly.
Note: As always, we recommend that when amending these for your own particular requirements that you open ‘our’ template and then save it under a different name. In this way if you need to refer back to our template it is always available.
Quality Improvements
The following quality improvements are addressed in this release:
Transfer of Blind Persons Allowance
Where a client is claiming transfer of blind person's allowance from the spouse, it was only allowing a value of upto £2,500 to be entered, this was the limit for 2020/21. The maximum that can be entered now is £2,520.
ITS 57749 - The Order of the Letter Paragraphs in the Transmittal Letter is Wrong
Following the release of 2022.1 some users reported that the Tax Return Bundle paragraphs were not appearing in the correct (default) order in client records when using the reset letter functionality.
ITS 66079 – Nominee claim picks up historical address
Where a repayment claim was made and a nominee is selected, the nominees' most recent historical address is used instead of the current address. When searching for and selecting the nominee record, the current address was shown, but when you preview/print/bundle the tax return the newest of the historical addresses was used instead.
ITS 66378 – Digital Tax Menu item
From File > Maintenance there is a menu option called Digital Tax; this item is no longer required and as such it has been removed. This was causing confusion for some customers, as it appeared to take you through the security checks with HMRC and confirms the credentials entered have been authorised.
ITS 66379 - Maintenance/Alimony Incorrect values are displayed
Similar to the transfer of Blind Persons Allowance, where a client was entering a value for Maintenance and Alimony purposes in excess of £3,530 it was only showing a value of £3,450 . The return and the computation were showing the correct value however of £3,530.
Notable Issues
ITS 66397 – 100% Zero Emissions Cars - unable to close data entry screen (SA106 AND SA904)
For a 2023 Tax Return when adding a zero emission car via the CA engine the allowance is double counted and as a result it is not possible to close the data entry screen and return to the main data entry menu.
It is intended to fix this for 2023.1 as this affects returns for the year ended 5 April 2023 only.