For IRIS chart client specific changes select Edit | Business Tax Accounts, (or select FII Edit in the Tax calculation data entry screen).
Select Franked investment income. This displays a list of all the accounts Business Tax includes in box 38.
Highlight the account number you have posted the group dividends to in Accounts Production and click Delete.
When asked if you want to delete the account, click Yes and then exit the Setup option.
Now that you have removed the account from Franked investment income, Business Tax will no longer automatically remove the income in the Trading Profit/Loss calculation.
To correct this select Edit | Posting and make an Income disallowed posting disallowing the total on the dividend account.
For a global change select Setup | Business Tax Accounts and click OK to the chart. Remove the account code from Franked investment income.
If you are using the ELTD chart:
Dividends from group companies should be posted to account 109. This account is deducted from the Trading profit but not included in the Franked Investment Income.
If a different account has been used follow the procedure outlined for IRIS chart users above to change the Business Tax Accounts option.
Box 38 only has to be completed if the company claims to be charged at the starting or small companies' rate or claims marginal, starting or small companies' relief. If the company made a loss or is being charged at the full rate of tax box 38 is not completed and the Franked Investment Income memo is not included on the corporation tax computation.
Go to Data Entry | Calculation | Tax Calculation. Enter the number of associated companies excluding the company that you are working on.
These boxes only need to be completed if all the following are true:
The corporation tax accounting period straddles two financial years and
The upper or lower limits for marginal relief varies and
The number of associated companies was different.
For further information see Note 39 - 41 on the Company Tax Return Guide.
These fields only have to be completed if there was a different tax rate in the two financial years. For further information see Notes 43 - 62 on the Inland Revenue's Company Tax Return Guide.
You should only enter deductions before 6 April 2002 in this field so if the accounting period starts after this date Business Tax does not allow you to access the field.
Companies now set off the CIS deductions they have suffered against the PAYE, NICs, student loan repayments (SLR) and CIS they are due to account for in respect of their own employees and subcontractors. In future companies will only pay over the PAYE, NICs, SLR, and CIS due after setting off the CIS deductions suffered. Any deductions that cannot be set against the payments that the company is liable to make during the year will be repaid at the end of the tax year through the normal end of year PAYE process.
Please note box 73 has now been replaced by double taxation relief.
Go to Reports | CT600, select whether the report is final/interim/unrecorded and then choose to print the return to the screen or be printed. On the Corporation Tax Self Assessment Return Print screen select the CTAP you wish to print at the top of the screen, next to the period details.
Select Data entry | Calculation | Income and then click Trading losses. Enter the loss in the Carried back field. The carried back loss can also be shown as brought back in the previous accounting period, using the Brought back field.
Select Data Entry | Calculation | Reliefs and Deductions in Terms of Tax | Calculation of Tax Outstanding or Overpaid tab. Enter the amount into box 84, Income Tax deducted by gross income.