The interest calculator allows you to quickly calculate and compare your client’s use of money interest for a given year.
When you open the interest calculator the latest information for the selected client is displayed. At the top of the window, there are three radio buttons, one for each of the selections available:
Accrued — displays the latest amount the IRD has sent and the date it has been calculated to
Calculated — displays amounts from the tax return or what has been selected in the calculator itself
Override — allows you to enter an arbitrary amount.
The RIT displayed for Trusts excludes beneficiary tax, so may be a different value to the amount of RIT shown in the Return Summary section of the Summary view.
When you close the calculator, all three amounts are displayed on the Tax Manager Summary page. The amount that is displayed in bold text is the amount that is selected in the interest calculator, and is the amount used in tax notices. The override amount will only display if you have selected Override in the calculator, otherwise it displays as zero.
Go to any of the following Tax Manager windows:
Tax notice details view.
On the TASKS bar, click Interest calculator. The Use of Money Interest Calculator window appears with the most recently saved calculation method selected.
Select from the available radio buttons to see the results of the selected calculation method.
Enter any override amounts or calculated dates that affect the calculation.
When you have decided which calculation you want to use for this client, ensure that the relevant radio button is selected and click OK. The interest calculator closes and any changes for the selected calculation method are saved. The selected method is displayed in bold on the Tax Manager Summary page.