FAQ answers

1. How do I include Capital Gains computations with an online return?

From 2008, the Capital Gains Summary supplement provides an overview of capital gains and losses, which enables capital gains tax liability to be calculated.
In the Tax Return program, we have provided a Capital Gains calculator, which can be accessed from the on-screen image of page CG1 of the Capital Gains Summary. This enables you to enter details of asset disposals and produce a Capital Gains schedule.

HMRC requires capital gains computations to be included with the return. This can be done in any one of the following ways:

1.

Include the Capital Gains schedule produced with the Capital Gains calculator as an attachment.

2.

Include a separate document containing the capital gains computations as an attachment.

3.

Enter details of the capital gains computations in the 'Any other information' section on page CG2 of the Capital Gains Summary supplement.

If you have used the Capital Gains calculator to produce a Capital Gains schedule, the best way to include the computations with the return is to use option 1 above. To do this, click on the 'FBI Attachments' button on the Toolbar to open the 'FBI Attachments' window. Select 'Capital gains' as one of the schedules to be attached.

2. Why do my dates appear in the format mm/dd/yyyy?

You must actively set the date format in Windows to dd/mm/yy or dd/mm/yyyy. Go into the Windows Control Panel and double-click on Regional Settings then select the Date tab. If the Short Date Style is mm/dd/yy, change it to dd/mm/yy and click on OK. If the the Short Date Style is dd/mm/yy, change it to mm/dd/yy, click on OK, then go back into the Regional Settings and change the Short Date Style back to dd/mm/yy.

3. How can I use the TaxBase Diary for 2009 and future years?

The TaxBase Diary has the capacity for up to four years. These can be any years you choose. If you started using TaxBase several years ago you may have data in the Diary for the past four years. You can clear out the data for the earliest year and rename this page 2009-10 (or just 2009 if you prefer).

To do this, first make a backup of the client database file TBASE020.MDB in your TaxBase data folder (you may wish to recover the data you are about to delete at some future time).

Select the Diary page you wish to clear; this will normally be the earliest year. Click on the 'Clear All' button; you will be given the option to abandon the clear operation or confirm it. When you confirm that you wish to clear this year's diary data, all dates and "client events" are cleared for the selected year for all clients in the database. The diary information for other years is preserved. You can now change the "Tax Year" text on this page to "2009-10".

4. How do I make sure a female taxpayer who is over 60 is automatically exempt from Class 4 NIC?

In the Class 4 NIC section of the Self-employment, Lloyd's Underwriter and Partnership supplements, a box is used to indicate exemption from Class 4 NIC.
If the taxpayer is over 65, as determined by the date of birth entered in box 1 in the section "Your personal details" on page TR1 of the Tax Return form, "X" is automatically entered in the Class 4 NIC exemption box.

However, if the taxpayer is female the exemption box must be set to "X" if she is over 60. The Tax Return form does not include any box to indicate the sex of the taxpayer, so we have included auxiliary option buttons in the section "Your personal details" on page TR1 of the Tax Return form where you can indicate the taxpayer's sex. The default setting is "Male". The appropriate option button will be selected when you import the client details from a TaxBase database, but you can also select the appropriate option manually.

To ensure that the Class 4 NIC exemption box is set to "X" automatically for a female taxpayer who is over 60, you must select the option "Female". This setting will be carried from one year to the next when you use the Transfer function.

5. Why do my TaxBase Diary reports not show any events or dates?

Before using Diary reports in TaxBase, you must identify up to 6 "Key Events" from your Standard Events list. The Key Events will appear on your Diary reports as column headers, and the dates associated with these events will appear in the report alongside each client's name.

To identify a Key Event you must insert an asterisk (*) at the beginning of the Standard Event name in the Diary. For example, if you have a Standard Event called:

Tax Return sent to HMRC

and you wish this to be one of the Key Events, change the name to:

*Tax Return sent to HMRC

This will ensure that this event appears on your Diary reports.

6. Why does the tax calculation omit age-related MCA for a taxpayer born before 6 April 1935?

From the 2000-01 tax year onwards, Married Couple's Allowance is only available when a married man or his wife were born before 6 April 1935.

MCA comprises a minimum element (£2,540 for 2008-09) and an age-related element. The minimum element is always given. The maximum age-related amount depends on the age of the older spouse.

For 2008-09, the maximum amount of the age-related element is £4,085 if the older spouse was over 75 during the tax year, and £3,995 if the older spouse was aged between 65 and 75 during the tax year. If the net taxable income was above a specified minimum limit (£21,800 for 2008-09) the amount of the age-related element of MCA is reduced in proportion to the difference between his taxable income and the minimum limit, and will be eliminated completely if the taxable income is sufficiently high.

7. How do I produce an estimated tax calculation for the following tax year?

To produce an estimated tax calculation for the 2009-10 tax year within the 2009 Tax Return, proceed as follows:

1.

Open the client's tax return file.

2.

Click on the 'Tax Calculation Summary' button on the Toolbar to open the 'Tax Calculation Summary' supplement.

Alternatively, click on the TCS1 button at the bottom of the main Tax Return window to open page 1 of the 'Tax Calculation Summary' supplement.

3.

Click on the '2008-09' button to open the 'Estimated Tax Calculation for 2008-09' window.

4.

Enter the required amounts on each screen using the tab bars at left of the window to select each screen.

5.

Click on the 'Summary' button to preview and print the estimated tax calculation for 2009-10.

8. How do I produce the CT600 (Short) form using the Company Tax Return?

The Company Tax Return program always displays the full CT600 form on screen. When you print the return, the CT600 (Short) form will be printed if both the following apply:

1.

In the Print window, you have ticked the box labelled "Tick this box to print the Short Company Tax Return when appropriate".

2.

You have not entered any information in boxes that require the full CT600.

9. How do I set the identifier for a Tax Assistant data folder?

When using FBI in Tax Assistant you must identify each Tax Assistant data folder using a unique 2-character identifier.

Even if you are only using a single data folder you must assign an identifier to it.
If you use more than one data folder, for example one for each partner in the firm, you must assign a different identifier to each folder.

This does not mean you have to assign a different identifier for each return type (i.e. 2006 Tax Return, 2007 Partnership Tax Return, etc.) within a data folder. In fact it is preferable to use the same identifier for all data types within the same data folder. In the simplest case, where you use the same data folder for all returns, we recommend using the same identifier in all the Tax Assistant programs.

Once you have set up the data folder identifier(s) they will normally carry forward to future years, so you should only need to set them up once.

To set up data folder identifiers, proceed as follows:

1.

Start a Tax Return program by clicking on the appropriate button on the Tax Assistant Desktop.

2.

Select 'Administration...' on the 'FBI' menu to open the 'FBI Administration' window (if required, enter your FBI password).

3.

In the frame labelled 'Client File Folders', enter an identifier for each available folder. Each identifier must be unique. For example, if you have a data folder for each partner, enter each partner's initials in the appropriate boxes.

4.

Click on the 'Close' button to save the information you have entered.

 

10.  How do I refile a return that has been submitted as an amendment but needs to go as an original return?

There are several steps to enable this:
• Make a note of the UTR for this particular client
• Make a note of the data location which be found by selecting the following menu options File – Folder – Manager (e.g. C:\Tax Data\Tax10)
• Browse to the data location using My Computer or Windows Explorer
• Double click on the Submissions folder and delete the file for this client which can be identified by the UTR
• Double click on the Receipts folder and delete the file for this client which can be identified by the UTR
• Open the tax return in Tax Assistant
• Go to the FBI menu (entering the password if required) and click on File
• Click the Edit button at the top right
• Delete any dates e.g. Lodged, Accepted
• Click the Lock button at the top right
• The return can now be refiled as an original return, ensuring that the amended return box is unticked on page 1 of the return

 

11. Why when I open the software do I get a message to say "Directory path X:\xxxx\Tax10 not found"

If the machine is Wincows 7 or vista and the path begines with a mapped drive letter, change this to a UNC path e.e \\server\data\xxxx\Tax10 may be the equivalent of X:\xxxx\Tax10 in this example. Otherwise check that the data path is correct, and that there are no problems with network connectivity, by browsing directly to the data location via My Computer or Windows Explorer.

12. Why when I have received my activation key and go into Licence Control the Activate button is greyed out on my Windows Vista or Windows 7 machine?

A:  The permissions will need to be reset on the Tax Assistant program folder before generating a fresh licence request:
• Select Start -> Computer to open the Computer window
• Double-click on the C: drive icon to open it
• Double-click on the Program Files icon to open that folder
• Right-click on the Tax Assistant icon and select Properties on the menu to open the Properties window
• Click on the Security tab
• Click on the Edit button
• In the Group or user names list, select Users
• In the Permissions for Users list, tick the Full control checkbox in the Allow column
• Click on the OK button in the Permissions window
• Click on the OK button in the Properties window
• Generate a fresh licence request and send through to Drummohr, the Activate button should now be enabled