Current account year-end balances
We recently discovered that Inland Revenue has changed how Current Account year-end balances should be reported in the IR10 form.
Background
In TaxLab, we have always followed standard accounting sign conventions, where:
- Credit balances are entered as negative values.
- Debit balances are entered as positive values.
Previously, when e-filing, TaxLab would automatically flip these signs to meet Inland Revenue's requirements, which were:
- Credit balances reported as positive values.
- Debit balances reported as negative values.
What's the Change?
Now, Inland Revenue has switched to using standard accounting conventions for Current Accounts.
As a result, we've updated TaxLab so it no longer flips the signs when e-filing, meaning balances will now be filed exactly as entered. This update applies to all tax returns for the 2024 period and onwards.
Why is this change happening now?
Inland Revenue didn't notify us about this change, so we weren't able to include it in our usual annual update process. We have updated TaxLab as quickly as possible once discovering it.
What you need to know
Continue entering your Current Account year-end balances in accounting sign convention as usual.
- Credit balances will now be filed as negative values.
- Debit balances will be filed as positive values.
This update has been applied to all 2024 tax returns moving forward.
Impact on your tax returns
2024 returns that are already filed or are in a "Ready to Sign" state will not be updated.
- If your return is in a "Ready to Sign" state, you can set it back to "Draft" and recalculate to apply the updated sign conventions. Keep in mind this will affect the e-filing checksum.
- If your return has already been filed, you can make any necessary changes directly in myIR.
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