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Product update – Version 2020.17.1

Summary:

  • Tax Returns
  • Highlights of the 20/21 tax return changes
  • Bug fixes

SA100, SA800 & SA900:

  • The calculations for the 20/21 tax year have been released. Users will be able to do their roll forward for the 20/21 tax year, returns will not be able to be submitted until the 6th of April depending on HMRC opening the gateway.

Highlights of the 20/21 tax return changes:

Coronavirus Support Scheme payments  

  • there is no specific provision on the tax returns in which to declare the support payments received under the Job Retention Scheme and Eat Out To Help Out schemes. There is however a requirement to confirm that such payments received have been included within the business profits.     
  • Self-Employment Income Support Scheme – there are specific boxes within the Self Employment (SA103) and Partnership income (SA104) which should include the amount of any payments received under this scheme during the year.     

Coronavirus Support Scheme Payments incorrectly claimed – there is now a requirement to report amounts of any support payments that were incorrectly claimed during the year. These amounts will need to be repaid. They are included within the Taxfiler tax calculation and collected by HMRC as part of the Self-Assessment tax bill following submission of the 2020/21 tax return.      

Residential Finance Costs restriction – as you may already be aware residential finance costs are no longer a deductible expense against rental income for 2020/21 onwards. Relief for the full amount of costs incurred during the year together with any unused costs brought forward is given as a 20% reduction against the tax due.    

Capital Gains changes: 

  • Business Asset Disposals Relief & Investors’ Relief – the 2020/21 tax returns reflect the name change from Entrepreneurs’ Relief to Business Asset Disposals Relief.  
  • From 2020/21 it is also a requirement to report the amount of Entrepreneurs’ Relief and Investors Relief claims made to date by Individuals and Trust & Estates
  • Disposals of UK and Non-UK Residential Property by UK residents – for the SA100 there are new boxes in which to report gains and losses on the disposal of UK Residential properties which helps to differentiate between disposals of UK and Non-UK property. The SA900 Trust & Estate return contains a new section. Taxfiler has provided a new ‘asset type’ within the disposals data input to accommodate this change. There are no changes to the reporting of Non-Resident Capital Gains.   

Foreign income 

  • The amount of foreign dividend income that can be reported on the SA100 has been increased from £300 to £2,000.  
  • Remitted foreign Interest and Dividend income 
    • Foreign pages (SA106) have two new sections to report income from dividends and interest remitted to the UK. Taxfiler will populate these boxes when claiming the remittance basis. 
    • In addition, it is a requirement to indicate the total amount of dividend income that was received prior to 2016 but remitted during the period of the tax return being completed. The data input area contains an option to indicate if this applies.  

Bug fixes:

  • There was a certain scenario where the invoice was not being sent to the Primary user, this has been identified and a fix put in place.
  • When a company had a very long name there was an overlap on the declarations page, this has been fixed.
  • Fix implemented on an SA106, when a user claimed the property income allowance for foreign property, they will no longer receive an error on the review and file tab.