Digita User Area product support, updates and advice

A number of users have raised the issue of clients who have made contributions to Retirement Annuity contracts in 2006/07 and later years, but have no relevant earnings. more »

As a result of the new pension regime which came into effect on 6 April 2006, there is no longer a specific category for Superannuation.  Instead, you will need to:

1. Go to Edit > Schedule Editor > Pension Contributions > New
2. Select type ‘Other’
3. Enter the superannuation as a gross payment (leave the ‘Net’ field blank). 
4. Select ‘Relievable premium’ towards the bottom of the dialog on the left hand side.

In addition to the above, there is an issue in the program where self employment and partnership income may not automatically be recognised as Relevant Earnings for pension purposes.  This has been resolved for all new schedules created in 2006/07 in version 10.3 of Digita Personal, Business and Trust Tax, but for existing schedules you may need to manually indicate that the income should be included.  For Sole Traders, there is a tick box on the ‘Assessable profits’ tab (found in the Current year tax details dialog if you are using Business Tax), and for partnership income, the tick box is on the ‘Trading’ tab.

If  Partnership or Sole Trader income has not been included in the Relevant Earnings for a client it is likely that the “Include in relevant UK earnings for pensions” tick box within the appropriate schedule has not been ticked more »