Working with Assessment Years 

An assessment year is automatically created for each year covered by the accounting periods created for the client. If you delete accounting periods, any assessment years no longer covered by the remaining accounting periods will also be deleted.

Use the Assessment Year view to enter information specific to a particular tax year, such as overlap details, cash basis, UITF 40 adjustments and income averaging.

Most of the information for the Assessment Year is generated automatically and will not need editing. For example, overlap days and profits are calculated from the accounting period dates and the accounts data that you enter.

Overlap days and profits

If you first use Business Tax for an existing client, there may be accrued overlap profits.

In this case you should enter the overlap days brought forward for the first assessment year that you enter for your client in the software.

To enter overlap days and profits:

  1. Change to the Assessment Years view by clicking Years on the toolbar.
  2. For Partnerships, click Partner Details in the Navigator then click the + next to the partner you want to enter overlap profits for. This opens the folder for that partner.
  3. Select Overlap Profits in the Navigator. The Overlap Profits form appears.
  4. Enter the overlap profits details for each assessment year in the grid. You can change the cell to edit by clicking it or by using the cursor keys.
  5. Click the Overlap Days tab and enter any overlap days for the partner.
  6. Click Save on the toolbar when you have finished.

Following basis period reform from April 2024, the calculations will reflect the final overlap profits/days and no profits/relief will be carried forward as overlap relief is not available from 6 April 2024.

You may also need to enter details of any cash basis adjustments, income averaging or adjustment income that may apply to the client, as well as deductions made on account of tax by contractors.

While all other data should be generated by the rest of the program, much of it can be edited in the Assessment Years view.

Transitional Period Profits

For assessment year 2023/24, the Transitional Period Profit and allocation to tax years will be presented. Any transitional profit will be spread across 5 years by default. If you wish to elect for the profits to be taxed sooner, edit the figures in the Allocated to year column.

If you first use Business Tax for a client after tax year 2023/24, there may be transitional period profits to be taxed in later years.

To add the Transitional Period Profits brought forward:-

  1. Change to the Assessment Years view by clicking Years on the toolbar.
  2. For Partnerships, click Partner Details in the Navigator then click the + next to the partner you want to enter overlap profits for. This opens the folder for that partner.
  3. Select Transitional Period Profits in the Navigator. The Transitional Period Profits form appears.
  4. Enter the Transitional Period Profits details for each assessment year in the grid. You can change the cell to edit by clicking it or by using the cursor keys.
  5. You can edit the amount Allocated to year if required and the Carried forward amounts will adjust accordingly.
  6. Click Save on the toolbar when you have finished.