Truth Software Release Notes

Details of changes to our back office and Cashflow Modelling software

Buy-To-Let income tax relief & improvements to Bond Gain calculations (18/05/2020)

Buy-To-Let income tax relief

Profits, Allowable Expenses & Finance Cost Relief are now calculated automatically for Rental Properties.

The taxable profits and allowable expenses now appear on the Income Statement as shown here:-

rental property income tax buy to let tax relief income statement

With any Finance Cost Relief deducted from the Income Tax calculation:

rental property income tax buy to let tax relief income tax calculation

 

Changes to the Property item:

  • On the Details tab, you can now select a linked mortgage. This will do two things:
    • Calculate and apply any Finance Costs from the mortgage if it’s a rental property
    • Automatically redeem an outstanding mortgage if the property is sold.
  • Any Personal Expenses now show a combined total.
  • A new table added on the Rent Received tab. Here we calculate and summarise any Rent Received, Allowable Expenses, Property Profits and Finance Costs.  Allowable Expenses can be amended within the table for any projected spending difference.  Double-clicking the Finance Costs will open the linked Mortgage item.

prestwood truth cashflow software rental property income tax buy to let tax relief income tax data entry property item

Changes to Top-Slicing Relief

Following the Marina Silver vs HMRC case, the new ruling from 11th March 2020 has been applied. The individual’s Personal Allowance is now calculated from other taxable income and just the relevant slice.

Budget Update, Contact History improvements, & Small Pots (06/04/2020)

Budget Update

We’ve updated all rates and allowances for the UK and SRIT in line with Government guidance, including:

  • Changes to tapering for Annual Allowance
  • Changes to Lifetime Allowance
  • Changes to the Residence Nil Rate Band
  • Changes to base tables for annuity rate calculations
  • Changes to company car benefit calculations, including addition of electric car ranges and linking to the VCA database

prestwood truth software cashflow release notes latest tax calculations income 2020 2021 scottish rates SRIT

Income tax calculation for 2020/21 using Scottish Rates of Income Tax (SRIT)

Contact History improvements

We’ve made several quality-of-life improvements to assist with scanning to Contact History.  This will allow users who experience scanning issues to bulk-upload scanned documents to Contact History from external scanning software.

 

prestwood truth software release notes contact history bulk upload scanning files

Small Pension Pots

We’ve added a facility to allow pension benefits to be taken as ‘small pension pots’ on the ‘Crystallisations’ section.    Simply tick the boxes shown below and the transaction will no longer affect the LTA or trigger the MPAA.  We’re leaving it to you to decide what can/can’t be a small pot.  However, we’ve limited this to no more than 3 transactions with a value of £10,000 or less.

prestwood truth cashflow modelling software advanced pension planning small pots lifetime allowance exemption

Maintenance Update & Irish Budget changes (01/01/2020)

Irish Budget changes

We’ve updated all rates and allowances in line with Government guidance, including reduction to DIRT rate to 33%.

Changes to Key Dates in Templates & Intelligent Office improvements (26/09/2019)

Changes to Key Dates in Templates

We’ve made a number of improvements to the way in which Key Dates work with template clients.  You can now set up new clients with pre-defined dynamic dates, such as “Long term care” or “Downsize”.  New clients created from these templates will already have these Key Dates in place, ready for you to use them during client meetings.

If you’re importing data from Intelligent Office, you can base your new clients on these templates and benefit from pre-fabricated solutions.  If you need any assistance updating your templates, please give our support team a call on 01384 273736.

Improvements to Intelligent Office integration

It’s been live for just over a month, and our new iO Store App has already been used to export over 1,000 clients’ data from Intelligent Office to Truth, as well as sending over 500 clients’ data back the other way.

We’ve listened to all your comments and feedback, and are pleased to say that this update will make the integration even slicker and more efficient.  Read the full user guide here.

Gabriel Speed Improvements & Intelligent Office Integration (27/08/2019)

Intelligent Office Integration

We’re delighted to announce that our Truth app is now live in the iO Store.  You can find us under “Financial Planning Tools”.

We’ve produced a truly comprehensive link with Intelligent OfficeTM, which brings all relevant planning information exposed by the Intelligent OfficeTM API across into Truth®.

You can now work with absolute confidence, knowing that any data entered will be consistent across all applications.  Use cashflow modelling for all clients, produce new cashflows in minutes, and make double-entry a thing of the past!

Once you’ve finished modelling, or had your client meeting, send the updated information back to Intelligent OfficeTM.

For more detail on the new integration click here.

Gabriel Speed Improvements

We’ve made some significant improvements to the speed of our Gabriel reporting module.

Following user feedback, we looked into potential efficiency savings.  In-house testing has shown up to 125x increase in speed!

We’re hoping that this will make producing Gabriel returns in Prestwood even more painless.

prestwood truth software release notes financial planning gabriel reporting speed improvements update

Tax Year update (05/04/2019)

Truth has been updated to use the latest tax rates, allowances, and changes announced in the budget.  This update will go live on Friday 5th April and will take effect automatically when using the software on or after 6th April 2019.

Here are the highlights:

  • Increased personal allowance (to £12,500)
  • All Income Tax and National Insurance thresholds and allowances updated
  • Changes to Scottish Rates of Income Tax (SRIT)
  • Ready for Welsh Rates of Income Tax (when they differ from the UK)
  • Lifetime Allowance increased to £1,055,000
  • Main Residence Nil Rate Band increased to £150,000
  • New State Pension figures for 2019/20

Advanced Lifetime Allowance planning options & maintenance update (14/03/2019)

In addition to over 100 maintenance updates and improvements, the latest software update includes:

Advanced Lifetime Allowance (LTA) planning

Choose to crystallise benefits “Up to the LTA” in pension items.

prestwood truth software release notes advanced lifetime allowance planning up to lta pension crystallisation retirement benefit option

This allows you to specify one withdrawal strategy up to the LTA, and a different strategy thereafter.  Show clients the difference between taking the LTA excess as a lump sum, or as income with ease.  This functionality also works dynamically with Fixed and Individual Protection.

In the example below, a client with FP 2012 is taking benefits up to the LTA as a lump sum.  They’re then deferring the crystallisation of remaining funds until just before age 75.  You can clearly see that 100% of available LTA is being used, incorporating both the client’s Fixed Protection LTA and any previous benefit crystallisations.

prestwood truth software release notes advanced lifetime allowance planning up to lta pension crystallisation retirement benefit option 100% used

Change to default view in Contact History

Contact History will now load fewer records by default, allowing a slicker and more dynamic experience for those who have many thousands of records over the last year.   You can control the number of records loaded in Software Settings > General:

prestwood truth software release notes contact history default records loaded

 

If you or your colleagues have added contact history records to the client you are viewing, you can now refresh the current view to reflect any recent changes.  Any filters you have in place will be preserved.

prestwood truth software release notes contact history refresh view new records

Pension Planning Update (Phase III) & Contact History (21/01/2019)

Annuity Rates updated

Annuity rate projections have been adjusted in line with the recent change from the Institute and Faculty of Actuaries’ Continuous Mortality Investigation (CMI) data, as required by FCA COBS 19.1.

Pension Warning Notifications

Pension warnings have always been a useful feature in the software, letting you know if there’s a potential breach of Annual Allowance or Lifetime Allowance in any planning scenario.  However being redirected to the Pension screen could spoil your workflow, or the impact of a decision, in a planning meeting with clients.

We’ve solved this by introducing non-intrusive Badges and (Toast) Notifications, as shown below.

prestwood truth software cashflow release notes pension warnings tool update

When you open your client, or encountering new pension issues, the number on the badge will increment and a notification will pop-up as a visual indication, rather then re-directing you to the page highlighting the issue.

You can click on the notification, or on the Pension menu button, to see a list of pension planning warnings and be taken straight to the Pension statement to review or fix the issue

Here, we’ve selected the first warning which has taken us directly to the problem screen for analysis…

prestwood truth software cashflow release notes pension statement warnings fix tool update

…where we can see there’s a projected breach of the annual allowance in a few years’ time.

Notifications will disappear after a few seconds; badges will remain until issues are addressed.

 

DB Schemes

From the Fact Find screen, Final Salary pensions have been migrated to DB Schemes. The new record card has been designed with a basic mode to allow very quick data entry (if all you are concerned about is showing any income benefits or entering figures from a scheme statement for cashflow modelling purposes), or an advanced mode to help you calculate any benefits, including deemed contributions and Early Retirement penalty factors.

prestwood truth software cashflow release notes new db pension item pension transfer apta

We’ve simplified viewing/entering figures in Today’s, Actual or Scheme Nths Basis terms.

We’ve removed the prerequisite for a linked employment scheme.

We’ve also given you the option of making the Benefit Start Age a Key Date, allowing you to slide the age on the cashflow charts to immediately demonstrate the impact with your clients.

 

Pension Toolbox revamped for cashflow modelling

We’ve made all our Pension tools available from one convenient menu from the suite of tools on the Cashflow Capital Chart, and added two new pension planning tools.

You can find out more about our Pension Contributions Calculator on YouTube.

prestwood truth software cashflow release notes pension toolbox cashflow tools

 

Target a Cashflow Balance

This new tool has all the power of the functionality from the Fact Find Targeter tool, with pension specific assumptions exposed for you to tweak and demonstrate for both existing and new pension schemes.

prestwood truth software cashflow release notes new pension target cashflow balance tool

Calculate how much an additional pension contribution needs to be to achieve a specific cashflow balance at a selected age – e.g. a cashflow balance of zero at age 100, or a million at retirement.  Whatever your client’s goal is, you can calculate, view, then keep or discard the results.

 

DB Pension Transfer Tool to Aid APTA (Appropriate Pension Transfer Analysis)

 

This new tool allows you quickly to demonstrate a comparison of remaining in a DB Scheme, or transferring out to a DC scheme.  Simply key in the CETV (Cash Equivalent Transfer Value) and click “overlay” to compare the two alternative cashflows.  You can simultaneously show an overlay of the death benefits too.

prestwood truth software cashflow release notes new defined benefit db pension transfer cashflow cash flow tool

You can tweak the proposed DC pension assumptions (which default to a sustainable drawdown income after taking 25% Tax Free Cash).

Choose “Keep”, and the tool will create a new scenario for you with the proposed DC Scheme, so you can really get under the bonnet and personalise the benefits to suit the client’s lifelong need.

See the tool in action on YouTube.

Contact History

Contact History is the place to record all the points of contact that anyone from your team has made with any of your clients.  You can add miscellaneous notes and enter all relevant dates/times/people/product reference numbers.  You can scan and attach files to each record.  You can send copies of emails directly from Microsoft Outlook.  You can print a copy of anything from the financial planning tools directly to Contact History.  It’s a one-stop communication trail.

Now Contact History has been given a makeover and sprinkled with useful new features.

prestwood truth software cashflow release notes new contact history document management system tool

You can now:-

  • pin important notes to the top of the list.
  • lock specific notes so that they cannot be amended or deleted for MiFID ii.
  • view/print the first line or the entire notes and arrange the layout to suit your preference.
  • easily see all the attachments for each record and give them more meaningful names.
  • filter/add/hide on any of the columns.
  • use a dedicated search box to find an expression in any column for the client record you’re in or all clients at once.

We’ve added a beautiful new gallery for scanned documents, to make it easier for you to view and attach to each of your clients.

We’ve added a powerful Directory, so that you can quickly get to the contact details of your clients and product providers.

Maintenance update (01/10/2018)

General maintenance update and bug fixes.

For our Professional users, we’ve made an amendment to the RMA-J return in Gabriel to incorporate CP 18/11 changes:

“Firms should no longer report income for pure protection contracts in FSCS life distribution & pensions class. Pure protection income should be reported in the General insurance distribution class (SB02) for the firm’s financial year ending in 2018”.

Revenue from Pure Protection contracts will now automatically be displayed under SB02 for FSCS reporting purposes in RMA-J.

Pension Planning Update (Phase II) (16/07/2018)

Pension Contribution Calculator – New Cashflow Tool

You can now demonstrate the impact of additional pension contributions directly from the Cashflow Statement, using our new Pension Contribution Calculator.  It takes into account everything we recently introduced in phase one of our suite of Pension Planning tools and improvements.

In the example below, we have asked the calculator to work out maximum additional personal contributions for each year up to retirement, without breaching the Annual Allowance (AA) or the projected Lifetime Allowance (LTA).

prestwood truth software release notes pension contributions calculator cashflow tool

The chart shows the client’s cashflow forecast before and after the additional contributions.  You can choose whether to keep or discard the calculated contributions as a planning decision.

This new tool allows you to:

  1. Select an existing or new pension item to receive contributions.
  2. Select the contribution period
    1. Just the current tax year
    2. All years from now until retirement (or a selected age)
    3. Custom dates (simply tick which years to include).
  3. Personal or Employer contributions
  4. Whether to allow an LTA breach or not.
  5. Keep (payment history lines will be added to the selected pension item) or discard the calculated payments.

Pension Planning Update (Phase I) (20/06/2018)

As the first stage of our Pension Update, we’re pleased to announce your all-new Pension Statement; Lifetime Allowance charging, and Dynamic Sustainable Drawdown Income. More updates will follow shortly…

New Pension Statement

Featuring three distinct sections to help you answer key questions your clients may have each tax year, and new Lifelong Charts to help spot opportunities or potential problems in advance.

 

Lifetime Allowance Charging

The Crystallisations tab now shows you if there’s been a LTA charge, at what rate, and the net value of benefits after the charge.  Pension benefits will appear net of LTA charge on the Income Statement and Cashflow, so you can easily show clients the true effect of different pension planning options.

prestwood truth software release notes lifetime allowance charging LTA pension benefitsDynamic Sustainable Income Calculator

We’ve had great feedback on the Sustainable Drawdown Income Calculator, which helps you calculate a sustainable income to deplete the fund.  However, other assumptions which could impact on the fund value changed, that calculated income would remain the same until you elected to recalculate.

You now have an option to ‘Auto-update’ drawdown income.  Should any assumptions change, Truth will automatically recalculate the new sustainable income amount for you.

prestwood truth software release notes dynamically calculate sustainable drawdown income update

Encrypted Exports, Income Improvements, & Aegon Wrap Link (08/05/2018)

Exported client files are now encrypted

If client files are exported from now on, they will have full AES encryption for peace of mind and to aid you with GDPR. Furthermore, you can elect to export a client file and password protect it. Without the file password, no-one (including Prestwood people) will be able to read or import the file.

prestwood truth software release notes gdpr compliant export encryption password protection

Improvements to Income/Expenditure Filtering

We’ve made it more obvious to show when you have filtered out one-offs from the income and expenditure statements. Filtering out one-offs is there to allow you examine regular ongoing income/expenditure to get a good feel for your clients’ lifestyle. When the filter is on the filter button will darken, as always.  However, we now specify it in the column heading too as shown below.

prestwood truth software release notes improved filtering cashflow tool inflows outflows income expenditure statements

Cofunds/Aegon

Cofunds have upgraded their customers to the Aegon platform.   This update seamlessly handles the migrations for our mutual customers to continue to import the latest valuations for any relevant client holdings.

prestwood truth software release notes aegon cofunds integration wrap

Budget Update (06/04/2018)

Tax Rates and Allowances

  • Income Tax rates and Allowances, National Insurance rates, and Personal Allowances have been adjusted.
  • The reduction in the Dividend Allowance (£5,000 to £2,000) will apply automatically from 06/04/2018.
  • CPI indexation of the Lifetime Allowance (£1,000,000 to £1,030,000).
  • The Main Residence Nil Rate Band will increase from £100,000 to £125,000 for those leaving Main Residences to direct descendants (for those with estates under £2,000,000).

Scottish Rates of Income Tax (SRIT)

From 06/04/2018 SRIT will be charged at the following rates:

To apply SRIT for a client or partner, simply tick the “Use Scottish rate of Income Tax” option in their Personal Details:

Prestwood Truth budget 2018 cashflow modelling software software update changes improvements scottish rate income tax SRIT tickbox

This will apply SRIT rates to any non-savings, non-dividend income, and UK rates to savings and dividend income, as illustrated below:

Prestwood Truth budget 2018 cashflow modelling software software update changes improvements UK Scottish rate income tax difference