CCH Corporation Tax Release Notes
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1 CCH Corporation Tax Release Notes
2 Legal Notice Disclaimer CCH Software has made every effort to ensure the accuracy and completeness of these Release Notes. However, CCH Software, its staff and agents will not be liable for any errors or omissions and use of the software is subject to the customer s licence with CCH Software. These Release Notes should not be relied upon as a detailed specification of the system or the software. CCH Software may make changes to these Release Notes from time to time. Copyright These Release Notes may not be copied, altered, edited, disposed of or distributed without the prior consent of CCH Software. The content is confidential. Unless indicated otherwise all elements of this software production are owned by Wolters Kluwer (UK) Ltd Wolters Kluwer (UK) Limited (trading as CCH Software) Trademark Rights Microsoft, Windows, Windows NT, Windows for Workgroups, Windows 98, 2000, XP, MS-DOS, Windows Vista, Windows 7, Windows Server, Microsoft SQL Server, and Microsoft Office, are either registered trademarks or trademarks of Microsoft Corporation. Novell and NetWare are trademarks of Novell Inc. Citrix MetaFrame is a registered trademark or trademarks of Citrix Systems, Inc., All rights reserved. All other trademarks are the property of their respective owners. CCH Software 145 London Road, Kingston Upon Thames, Surrey KT2 6SR CCH CORPORATION TAX RELEASE NOTES JULY 2013 I
3 Contents Release Notes 1 Release Highlights 1 Prerequisites 1 Software Enhancements 2 Quality Improvements 11 Known Issues 14 II
4 Release Highlights This release of CCH corporation Tax contains a number of enhancements and improvements. Here are some of the release highlights: Budget update to the main rates of corporation tax for financial year 2014 and 2015 including the update of the marginal relief fraction Improvement to the annual investment allowance area Management expenses - trade allocation section Business premises renovation allowance CT600 (Short) Publish online filing documents to Document Management Publish online filing documents to Portal Land and property analysis CT600F Tonnage Tax supplementary pages CT600 and supplementary pages drill down Foreign trades and associated losses Foreign income CT600C supplementary pages continuation sheets Exporting computation to PDF format Improvement to the data flow to and from fixed asset additions and disposals Improvements to loan relationships window Full details of these changes and other quality improvements are included within this document. Prerequisites Software Requirements 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. You can find out more about the Central Suite Installer from the support website: Note: Before performing an upgrade you should backup your existing data. CCH CORPORATION TAX RELEASE NOTES JULY
5 Software Enhancements Budget 2013 update The main rates of corporation tax announced in the March 2013 budget for financial years 2014 and In addition, the marginal relief fractions for financial years 2013 and 2014 have been updated. Annual investment allowance There have been some significant improvements to the AIA window seen within the Tax planning area. The changes brought about by the 2013 budget have now been implemented, enhancing the window to not only show the overall maximum claim for the entire accounting period but the maximum claim for each period pre and post the change in the annual rate in April 2012, January 2013 and January The window also provides a series of numbered Allocation period data entry sections in which the actual claim for each period can be made. These Allocation periods represent the claim to be made in relation to the expenditure incurred within those periods. These periods align with the pre and post calculation mentioned above. The existence of the numbered Allocation periods is dependent upon the entries made in the fixed assets additions window within Balance Sheet analysis and Capital allowances areas. If fixed asset additions have been entered directly into the relevant capital allowances windows there will be only one allocation period shown in the AIA window. Management expenses The Allowable expenses window within Management expenses has been enhanced to allow for the allocation of the per accounts amount between trades and non-trade. The allocation section is only visible where there is either: a single trade and the trade has not been set as the primary trade, or there are multiple trades. Where there are multiple trades and one of the trades is marked as the primary trade, the total per accounts amount will be automatically allocated against the primary trade. If any amounts are manually reallocated to the other trades or non-trade, the software will automatically reduce the amount allocated against the primary trade. The allocations made are then reflected in the adjusted profit calculation appropriate to the individual trade. Business premises renovation allowances The 'Other' section of Capital allowances within Trading income has been enhanced to include Business premises renovation allowances. Data is input via a summary grid, from which an asset-specific details screen is produced when clicking on the Description field in the grid. 2 CCH CORPORATION TAX RELEASE NOTES JULY 2013
6 The premises must be given a name (each premises name must be unique) and a date of acquisition. These fields are mandatory and validation messages will appear if this information is not input. You will not be able to progress past these fields until relevant information is input. The remaining fields are a combination of manual data entry fields (white boxes) and calculated fields (grey, uneditable boxes). The software will produce the relevant allowances available, based on the data input. In order to be able to calculate the relevant allowances correctly, it is necessary for the user to input the cost and, if appropriate in period 1 on the system, the tax written down value brought forward if some initial allowance has already been claimed in an earlier period. The data entry diagrams given above relate to a Period of Account containing a single accounting period. Where there is more than one accounting period, there are 2 methods of inputting data. CCH CORPORATION TAX RELEASE NOTES JULY
7 Both are via a summary grid, but in multiple accounting period scenarios, there is an overarching summary screen which details the premises for the entire period of account. From this summary screen, clicking in the Description field will generate a smaller dialogue screen into which the 'static' data, which is not period specific, can be input. The remaining accounting period-specific data is then input via the relevant accounting period screen, which can be accessed using the hyperlink above the accounting period allowance summary at the bottom of the screen. CT600 Short return The CT600 short four page return is now available. The software will automatically produce the correct version of the CT600 based upon the data entered for an accounting period. For example, if there is an entry for foreign income which should be entered into Box 9 on the return, a long eight page return will be produced. If the data held in a case means that a short return can be completed it will be automatically produced when the View return option is chosen from the Actions menu in the left hand navigator panel. It is possible in these circumstances to opt to produce a long return by selecting Use CT600 long return option in the About this Return section in the Main Return data window. 4 CCH CORPORATION TAX RELEASE NOTES JULY 2013
8 Publish online filing documents to Document Management This release incorporates the facility to publish online filing documents to CCH Document Management. A user can only publish documents from within online filing if they have been granted the appropriate permissions. Please see section on task permissions. The documents can be published from two places within the Online filing area. Once the CT600 has passed the pre-validation checks and Following submission of the documents to HMRC Post pre validation Once the submission has successfully passed the pre validation check and the IRMark is generated, additional menu options will appear in the actions panel. An additional dialogue allows you to choose which documents to publish to Document Management. All items chosen will appear together in Document management as a zipped file. CCH CORPORATION TAX RELEASE NOTES JULY
9 Post submission to HMRC Once you have submitted your documents to HMRC and received a response the submission documents can be published to Document Management. Click on View submission documents and then click on Publish to Document Management. A new window will appear from which a selection of the available documents to publish can be made. From this stage within online filing the HMRC response can be selected. Publish online filing documents to Portal As with Document management above, it is now possible to publish the return, computation and online filing documentation to Portal from within the online submission area. This is also dependent on the appropriate task permissions. 6 CCH CORPORATION TAX RELEASE NOTES JULY 2013
10 The same options are available on clicking the Publish to Portal link. If Portal is not available, then this text will be grey and inactive. Trade - UK property business - Land and property analysis The land and property data input screens have been enhanced to allow analysis of multiple properties if required where the trade type is a UK property business. A new node, called 'Land and Property', is seen directly under the Trade name on the Data Navigator. Summary data can be input directly into the grid, or the expenses can be analysed using the Details link. The total of the analysed expenses for a specific land or property income source will populate the expenses field in the summary grid, rendering it uneditable. The total net profit will populate the Profit/(loss) before tax per accounts on the Trade summary screen, rendering that field uneditable. To prevent the property from being carried forward to future periods of account, there are two optional fields which, when ticked, will ensure the property does not appear in later periods. These fields, which are mutually exclusive are Disposed of in period and At the same time, the number of property businesses which can be created within the Trading Income screen has been restricted to 1 in accordance with legislation; all UK property details will now be analysed within that one property business record. CT600F Tonnage Tax supplementary pages The release now contains the CT600F Tonnage Tax supplementary pages. To complete the supplementary pages navigate to Tax return information>ct600f from the data navigator. CCH CORPORATION TAX RELEASE NOTES JULY
11 The separate sections for Information and Shipping profits ensure that the relevant data is captured in order to calculate the correct shipping profits. Inbuilt validations ensure that you have provided the correct information for disclosure and calculation purposes CT600 and supplementary pages drill down Improvements to the drill down from the tax return and supplementary pages have been made providing a useful tool for navigating to relevant data entry windows. If an item of data in a box on the return forms is derived from multiple data entry areas you can navigate to each area by right clicking on the box and selecting the source you wish to navigate to If there is only one source for the data in a box then a simple double click will take you to the relevant data entry area. This is predominantly relevant for the tax calculations. Foreign trades and losses It is now possible to create a foreign trade using the 'Foreign trade' company type option in the Trading income main screen when setting up the trade. The Tax planning>losses utilisation window has also been updated to include the handling of foreign trade losses. 8 CCH CORPORATION TAX RELEASE NOTES JULY 2013
12 Foreign income A new menu item has been added to the Data Navigator to facilitate the input of Foreign income. All foreign income sources are collated onto the Foreign Income Summary screen and linked by the use of hyperlinks to the relevant data entry windows. CT600C supplementary pages - continuation sheets It is now possible to produce continuation pages for the CT600C where the number of surrendering companies exceeds the amount on page 1 of the return (5) and/or the number of claimant companies entered exceeds the amount on page 2 of the return (7). Replicas of either page 1 or page 2 of the CT600C will appear at the end of the tax returns when Viewing tax returns and they will also be displayed as menu items in the drop down list as follows: CCH CORPORATION TAX RELEASE NOTES JULY
13 Exporting computation to PDF format It is now possible to export your corporation tax computation directly into PDF format by using the PDF icon situated on the View computation window. When the icon is selected, a window will open from which the full computation can be saved. Retail price index - update The RPI values are now updated to include values from May 2012 to April CCH CORPORATION TAX RELEASE NOTES JULY 2013
14 Quality Improvements There are a number of quality improvements made to the functionality contained in the release which are listed below. In addition to the specific improvements detailed here the computational reports continue to be improved and new ones added each release. Improvement to data flow to and from fixed asset additions and disposals Values of assets acquired/disposed within the Main pool and Special Rate pool will now flow into the Fixed Assets additions and disposals screens. Initially, values input into the main and special rate pools as acquisitions/disposals or transfers in/out did not appear on the Asset Summary at the foot of the Fixed Asset Additions or Disposals screens. This improvement ensures that full details of asset acquisitions and/or disposals are recorded in the Fixed asset summary even of they are not analysed in the upper section of the screen. Fixed asset additions - Cars allowance type An additional allowance type has been incorporated into the Allowance type drop down list in the fixed asset additions window entitled Cars > 160 g/km This allows you to add the details of the expenditure on cars with CO2 emissions of greater than 160 g/km. The value is then automatically posted to the special rate pool window for the specific accounting period to which the expenditure relates. Improvements to loan relationship windows New fields have been added to the trade and non-trade loan relationship credits and debits windows. The trade and non-trade loan relationship credits windows now contain the 'Non-taxable' field and the debits contain the 'Not relievable' field. The purpose of these fields is to allow adjustments to be made to the value carried forward to the next period for amounts which will never be taxable or relievable. CCH CORPORATION TAX RELEASE NOTES JULY
15 Short life assets - Improvements A number of improvements have been made to the short life assets within capital allowances for both Trade and Management expenses. Description of the asset can now accommodate special characters. This now includes such characters as,:,& and similar special characters. Transfer to main pool date is now automatically calculated for all acquisition dates including historic dates. Increase in data entry area to allow for large number of assets Online filing - HMRC business rules update The latest version of the HMRC business rules engine is incorporated. This incorporates the changes to the main rate of corporation tax and associated marginal relief standard fraction for Financial Years 2014 and CT600 Return - Page 1 - Estimates The checkbox located on Tax return information>ct600>main return data window is now enabled. This was previously greyed out and it was not possible to indicate that the return contained estimates. Leased cars - restriction for leases post 31/3/2013 The Leased cars window located within both Trade and Management expenses area has been improved to provide a checkbox Post 31/3/2013? (Screenshot of Leased cars in Management expenses) This ensures that the correct tax restriction is made to the net leasing costs on new leases taken out on after 31/3/2013. The revise level of CO2 emissions on which the adjustment is required for new leases is 130 g/km. Reports - Loans to Participators summary A summary schedule for the loans to participators and resulting s455 tax charge is now incorporated into this release. Document Management and Portal - Task permissions The publishing of documents to CCH Document Management and Portal is available to users based upon the permissions set up for a particular Security Group. 12 CCH CORPORATION TAX RELEASE NOTES JULY 2013
16 There are now two additional Corporation Tax specific task permissions each relating to the accessibility of publishing to Document Management and Portal from Corporation Tax. To set up these specific task permissions for these functional areas select Maintenance>Security>Task permissions. Select Corporation Tax from the Product list and then select the security group from the Group list. From the functional list select document Management or Portal. Within each of these categories you will see two permissions: #DocumentManagement#Efiling#Publish #DocumentManagement#Publish #Portal#Efiling#Publish #Portal#Publish One relates to the function of publishing documents from within the Online filing area and the other relates to the publishing documents from outside of the Online filing area. Check the box alongside the relevant permission that is to be changed. CCH CORPORATION TAX RELEASE NOTES JULY
17 Known Issues The following are known issues in the release of CCH Corporation Tax: ITS Online filing - Registered office address A failure is encountered when pre validating the submission where the first two lines of the registered office address have not been completed. The first two lines are mandatory. This predominantly occurs where the address contains one line plus the name of the town and the town is entered in the town field in central. Typically the error message is this:- The element 'CompanyAddress' has invalid child element 'AdditionalLine'. List of possible elements expected: Line Workaround: Edit the address by removing the name of the town from Town and re-entering it as the second line of the address. Alternatively if the Registered Office address in not needed for the return remove it from the Return by taking out the Registered Office Tick found under Maintenance, Address/Phone,Address Online filing - View HTML computation It is not possible to view the automatically generated HTML computation that is attached when accessing a submission within Online filing. The computation can be viewed from the following locations: Click on View computation from actions menu in navigator and then select Review ixbrl computation from the left hand task panel View submission documents from within submission are of Online filing (following submission to HMRC). BPRA and Short life assets - Multiple AP - Add button in detail window The add button within the BPRA and short life assets detail window incorrectly creates the existence of an asset in an earlier accounting period. 14 CCH CORPORATION TAX RELEASE NOTES JULY 2013
18 The circumstance under which this issue arises is as follows: More than one accounting period in a period of account The asset is added in the later accounting period(s) and the date of expenditure relates to the later period Using the add functionality from within the detail window for an existing asset. As can be seen in the screenshot above the software incorrectly treats the asset as if it had been acquired in the earlier accounting period evidenced by the calculation of a Tax written down value brought forward. Workaround Ensure that in the above scenario the asset is added by creating it from the grid for the accounting period. Workaround to correct erroneous additions Validations - CT600C - Group relief claims Where the consent option Notices of consent attached is selected a red error icon is incorrectly shown alongside the alternative consent option checkbox, Simplified arrangements in force. This will not affect an online filing submission. Validations - CT600C - Group relief surrender Where the consent option Simplified arrangements has been selected a red error icon is incorrectly shown alongside the consent option checkbox, Notices of consent attached. CCH CORPORATION TAX RELEASE NOTES JULY
19 16 CCH CORPORATION TAX RELEASE NOTES JULY 2013
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