Review tax differences

Review the comparison

1. Open Reports → Tax differences.
2. Choose the tax year with the buttons at the start of the filter row: the current year and the two years before it.
3. Find the client with the search or the filters, and click their row to open their panel.
4. Review the figures, source information, and differences shown.
5. Ask the responsible professional to check any unexpected amount.

In the client’s panel, Open the client’s tax differences page opens the same content on the client’s page. You can also get there from the client: in the client menu choose Reports → Tax differences. Choose the tax year at the top of the page; below it are the same figures, notes, handled mark and letter as in the panel. All of the office’s tax differences returns to the office-wide table.

Filters, assignees and export

In the filter row, search by client name or tax ID, and filter by Type, IT status, NI status, Letter sent, Handled, Primary assignee and Deputy assignee. The assignee filters also offer Unassigned. In IT difference over enter an amount in shekels, and only clients whose income tax difference, to pay or to refund, is larger than it are shown. While any filter is applied, Clear filters appears and brings every client back. The list remembers your search, filters, sorting and column order, and you can save views of your own. See Arranging lists and saved views.

Primary assignee and Deputy assignee are who handles the client’s tax differences in the chosen year, and you can change them right in the table. Until someone is picked as primary assignee for the year, the primary assignee is the assignee of the client. The info icon next to the column heading explains this when you hover over it. To assign several clients at once, tick them in the boxes at the start of the row and choose Set primary assignee or Set deputy assignee. Clear selection clears the ticks. Before anything changes, a window lists every row with its assignee now and after, and nothing changes until you choose Assign. If some rows could not be updated, the message names them.

Click a column heading to sort by it. Recalculate filtered recalculates from the books the differences of every client shown now, with the search and filters. Export to Excel downloads an Excel file with the rows shown now.

A calculation marked Outdated was made before the books changed under it, for example when a partnership’s split changed. Its figures stay on screen, but the letter can’t be prepared or sent until you recalculate the client.

Which advance is compared

The comparison uses the advance the client has today: the percentage or fixed yearly amount for income tax, and the monthly amount for National Insurance. What was already paid this year counts each month at the advance it had, so a change during the year doesn’t rewrite the earlier months. A client on a fixed yearly amount shows the amount in Income tax advance, and the recommendation is a yearly amount too.

When an advance changes for months a calculation covered, in this year or an earlier one, that calculation is marked Outdated and its letter and link stop working. This year’s calculation is redone straight away.

To update advances for many clients, choose Import advances and upload the Tax Authority or National Insurance file. In the preview, From month sets the month the values start; it opens on January of this year. If the advances changed mid-year, choose the month of the change. The imported value applies from that month on and replaces any later change of the client, so it becomes today’s advance. To load files of several years, import the oldest first. A fixed-amount advance in the Tax Authority file is imported as a yearly amount. To update one client, see Advances over time in Work in a client file.

An advances import can also map Email, Phone and Business type. A client created from the preview takes the business type right away, and email and phone are added to every client when you approve the import. The rules are the same as in importing the annual reports client list: an existing email or phone is never replaced; an existing contact is linked or a new contact is added instead. The Contact column shows what happens for each row. When the file names a different business type for an existing client, choose Keep the current type or Update from the file before approving.

Partnerships and partners

Income tax and National Insurance aren’t calculated on the partnership itself. A partnership’s row shows its activity only, and the advance, difference and status columns stay empty. The tax is calculated on each partner’s file, whose income and expenses include the partner’s share of the partnership. A partnership has no client letter either.

The Partnership column ties the rows together:

• A partnership’s row shows how many partners it has.
• A partner’s row shows the partnership’s name and the partner’s share in it.

Selecting either one shows only the partnership and its partners’ files. To go back to all clients, select the filter that was added to the filter row.

A partnership’s panel shows Partners and their tax differences: each partner, their share, and the tax differences of their file. Selecting a partner opens their file. A partner’s panel shows Partnerships, and selecting a partnership opens it. A partner with no file among the clients you can see appears without tax differences. A partner’s tax differences whose calculation is no longer current are marked Outdated.

When a partner is a partnership itself, its share is part of that partnership’s activity but isn’t split on to its own partners, so no file is taxed on it. The panel says so.

A company pays no National Insurance: its National Insurance columns stay empty, and its client letter covers income tax only.

Check the advances filed

The client’s panel shows Advances check: every advance filed this year against the books’ turnover for the same period, partnership shares included. Each period shows the turnover in the books, the turnover reported, the turnover difference, the advance rate, the advance that should have been paid, the advance paid, and the Difference to pay or Difference in your favor. Turnover breakdown shows where the turnover came from.

When a file receives a partnership share, the yearly projection also includes its share of the partnership’s income and expenses. See Split a partnership’s turnover into the partners’ files.

Prepare a client letter

Where the letter action is available, review the preview and client details before generating or sharing it. Use the secure letter link only for the intended recipient.

For the client

Open the letter link your office sent and read the figures and explanation. Contact the office if your details or amounts look incorrect, or if the link is unavailable.

A comparison or letter is not a filing confirmation. Keep any follow-up work with the client’s tasks or reporting workflow.