CCH Personal Tax 2022.1: Release Notes

Last updated
Save as PDF

Release Notes Banner.png

Overview

This release of Personal Tax is the annual compliance release. The following updated forms are included in this release:

SA100 & supplementary forms
SA800 & supplementary forms
SA900 & supplementary forms
R40
R185
Help sheets HS290, HS295, HS302 and HS304

The following compliance changes are also introduced:

Capital allowance changes (SBA and AIA)
A selection of quality improvements documented further in the release notes

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.

Items to be included in the next release

As in previous years, information provided by third parties is not made available until after April 5th; it is not possible to include these items as part of the main 2022.1 release. Subject to their timely provision, the following items are planned to be included as part of the next release:

FTSE350 file
Exchange Rates
DTA rates
Updated Specials & Exclusions for 2021/22 (See Specials & Exclusions for 2021/22)

Legislative & Compliance Updates

2022 Tax Forms

We have added the updated forms for the year ended 5 April 2022 for the following:

SA100
SA800
SA900
R40 (Please see Notable Issues)
Forms R185 (Please see Notable Issues)
Updated Help Sheets HS290, HS295, HS302 & HS304 (Please see Notable Issues)

Note: On May 6th 2020, the National Assembly for Wales became the Welsh Parliament (or Senedd Cymru). Accordingly, HMRC updated the SA102 for Welsh MP’s and renamed it SA102 Senedd Cymru/Welsh Parliament. Within Personal Tax we have changed all the references for National Assembly for Wales to Welsh Parliament. This change applies for all tax years.

SA102 Changes to the Car Benefits Table

CO2 emissions and car benefit multiplier

The Employment car fuel benefit multiplier has been updated as follows:

2023 to £25,300
2022 to £24,600

The latest Vehicle Certification Agency car fuel emissions data to September 2021 is included in this release.

Car Benefit - Fuel Type E

The car fuel type drop-down box has been amended for type E this now reads:

The description has been amended to read Electric/Hybrid, users had previously reported they were unable to access the electric mileage range box (F4), this change ensures that box F4 is able to be selected correctly.

This is ITS 63942 and is further listed in the Quality Improvements section of these notes.

Disguised Remuneration - Removed

Following on from the last 3 years Tax Returns, we can confirm that HMRC has removed the Disguised Remuneration fields for 2021/22. The data entry screens have been removed from the following areas:

Business Tax
Employments
Partnerships
Tax Return Other Information – Disguised Remuneration.

Information Request

Following the introduction of the Coronavirus paragraphs to all letters last year, we committed to making these conditional for the 2022 Information Requests. We are pleased to confirm that the requests have been updated.

The 2022 templates are:

2022 – CCH Information Request New Client
2022 – CCH Information Request no PY details
2022 – CCH Information Request PY details
2022 – CCH Trust – Information Request no PY details
2022 – CCH Trust – Information Request PY details

Individuals

Where Box 20.1 was ticked on the 2021 Tax Return (Tax Return Other Details > Additional details):

Previous years details included

The narrative on the information request has been updated s follows:

Previous year details NOT included

The narrative on the information request has been updated as follows:

Trusts and Estates

Similar changes have been made for the Trust Information Requests. We have not changed the New Client request but for the sake of completeness have added an additional template for 2022.

Specials and Exclusions

HMRC has only recently made available their updated exclusions document for 2021/22, accordingly we have not added any new exclusions in this release. As per HMRC the following items have been corrected in the 2021/22 computation, we have added an end date of 5 April 2022 ensuring they will no longer appear from 2021/22 onwards:

New Specials & Exclusion for 2021/22

The following are the new items that are NOT included in this release; it is planned to add these in the upcoming 2022.2 release:

Capital Allowances

Capital Allowances for Freeport Structures and Buildings Allowance and Zero-emission car allowance have been updated, in addition the reduction in the rate of Annual Investment Allowance has been deferred again this time until 31 March 2023.

Freeport Structures and Buildings Allowance (SBA)

New boxes have been added to the Capital Allowance screens for the manual entry of any claims for Freeport Structures and Buildings Allowance

Zero-emission car allowance

New boxes have been added to the Capital Allowance screens for the manual entry of any claims for Zero emission car allowance

Annual Investment Allowance – Extension of £1m limit to 31 March 2023

An announcement was made during the budget extending the temporary increase in the AIA amount of £1million to 31March 2023.

Personal Tax has been updated for the 2022 year retaining the existing £1million limit for 2022 and reverting to the existing £200,000 limit on 31 March 2023. Where the accounting period spans 31 March 2023, customers are reminded that ‘transitional’ rules apply, the amount of relief available is based on the acquisition date and the values are pro-rated. E.g., an asset purchased before the relief limit was reduced, the AIA available is as follows:

Accounting period - 1 May 2022 to 30 April 2023

Purchase on 1 May 2022 cost - 1,000,000

The capital allowance calculations are:

Note: Due to rounding the final figures may require an adjustment, use the Override tick box to update the value claimed.

Upgrade

Where an AIA claim has been made in the 2022 Tax Year in an earlier version of Personal Tax, when upgrading to 2022.1 the existing amount of Total AIA claimed is retained and the Override box is ticked to ensure no change to the calculated tax position or WDV calculations.

When this occurs, an Error and exception warning message appears advising you to check the values entered. The warning message is removed when the Business Tax data screen is saved.

Note: where data had been entered in the AIA claimed from 01/01/2022 field, this is removed on upgrade to 2022.1

Land and Property

Given this late change to the limits, HMRC has not updated the RIM artefacts for Land & Property for this change, we have retained the existing work around.

Tax Return Bundle, Disclosure Notes and Letter Paragraphs

We have updated the Tax Return Disclosure Notes, Tax Return Bundle and Letter Paragraphs to show the 2022/23 start and end dates.

Expat

SA109 Box 11.1 Coronavirus related workdays

HMRC has advised that although the 2022 Form SA109 includes box 11.1:

This is now redundant but was included on the form by HMRC in error. This is documented in the SA109 notes:

Note: As this box is no longer required, we have removed the relevant data entry options so that it cannot be completed in error.

SA800 - Question 6

HMRC has included additional tick boxes as part of Question 6:

We have added additional boxes to the additional details tab:

Upon upgrade to 2022 by default Tick if neither goods nor services are exported is selected.

Note: Where the business is a non-trading partnership it is not possible to change the default Tick if neither the goods nor services are exported.

2022/23 Tax Year

We have enabled the 2022/23 Tax year within Personal Tax. The computations for Individuals and Trust are based on the 2021/22 tax calculation but using the 2022/23 rates and allowances. A warning message appears on the SA302 and the Trust Computation:

Software Enhancements

Captial Allowance Computations and Schedules

All schedules for Capital allowances, and the Business Tax Computation (only available within Business Tax) have been updated to account of the Capital Allowance changes.

The Business Tax Computation appears:

Preparation for Making Tax Digital

Following the announcement that MTDfITSA is planned to go live in April 2024 and the requirement to have a pilot program from April 2023, an updated Report has been added to Central Reporting, MTD Gross Income >= £10k and UK resident. This report lists all UK Resident customers with Self Employed Income and/or Rental Income (UK and Foreign) where the total income is greater than £10,000. This report also shows the accounting year end as HMRC is currently required only taxpayers with a 5^th April year end. Rather than restrict the year end it is shown so that you can then filter as required allowing you to ‘slice and dice’ your data.

The fields returned in the report are:

Client Name
Client Code
Tax Return Type
Tax Year
Turnover (this is self-employment turnover)
Gross Rent (UK Rental Income)
Gross (Foreign Rental income gross rents)
Date ended – the accounting period end for self-employment
UK residence Status
Total Income

It would be extremely helpful if you could run this report and let us know the results i.e., how many customers you have that satisfy the initial criteria specified by HMRC. To submit the numbers please click here

Working from Home Fixed Rate Deduction

HMRC has not updated the Tax Returns to include a specific field for claiming the £6 per week working from home deduction, where claimed this needs to be consistent and you may need to consider the appropriate box to be used for all your customers. Looking at the HMRC guidance we would suggest that any claims for this deduction are made in either Box 18 or Box 20 on the SA102 and are accompanied by a white space note.

Quality Improvements

The following items have been updated in this release.

ITS 62883 - Car Benefit sheet shows wrong percentage

When completing a car benefit entry using the Government list for 2020/21 the calculation is correct, but the printed version shows the wrong percentage. This has been fixed for 2022 onwards.

ITS 63942 - Car Fuel Benefit Type E description

Following feedback from users we have updated the description for Fuel Type E from E – Zero emission to E- Electric/Hybrid. This enables the electric mileage range box F4 to appear when the car is a hybrid/low emission vehicle.

ITS 66124 - Gross up incorrect where taxpayer Not-resident and income should all be taxed at 20%

In the Proof of Equalisation – Partial we were not correctly calculating the amount of the basic rate band to include in the gross up calculation where the taxpayer was not resident in the UK and all the income to be grossed up was within the basic rate band. This issue first occurred in 2021 and has been fixed for 2022 onwards.

ITS 66166 - 'Proof of Equalisation' giving relief for restricted finance costs on Foreign Property Income covered by losses brought forward

In the Proof of Equalisation we were incorrectly giving relief for finance costs on foreign property where the relief should have been restricted as some, or all, of the profits were covered by losses brought forward used in the year. This has been fixed for 2022 onwards.

Notable Issues

2022 Forms

R185E

A small but significant change was introduced to the R185E to include details of Dividend Income taxed at 7.5% rate – this relates to dividend income received by the Estate in earlier years (where the 7.5% tax rate had been applied) but was not paid to the beneficiary until the 2021/22 Tax year:

We have added in this new form as it is however the ability to complete Box 18.1 is to be included in our 2022.2 release.

ITS 66217 - Expat - Foreign Tax Credit Relief Work Sheet - Pensions Savings Tax Charges Not Recalculated

For an expat case in the following circumstances:

The equalisation option is set to Specific and
Pension savings tax charges are entered, and
The values are taxed at the marginal rates

The rate applied is solely the higher rate.

This has been found late in our testing and will be fixed in a future release.

ITS 66225 - Expat - Foreign Tax Credit Relief Work Sheet - High Income Child Benefit Charge not recalculated

Where total income minus the TCR is less then £50,000 e.g. The 'Income where TCR is being claimed' is £15,000 and total income was £62,911. The net income is £62,911 - £15,000 = £47,911. As this is less than £50,000 no 'High Income Child Benefit Charge' is due. The issue is also present when the 'Equalisation option' is changed to 'Full'.

ITS 66227 - Expat - Hypo Tax Calc - Modified Printing Condition

For an expat case using the Hypothetical Tax Calculation a sub total below the Foreign Tax Credit Relief should be visible but it is not doing so.

Note: These items have been found late in our testing and are scheduled to be fixed in a future release.