What’s new in the 2020 tax form?
Thousands of self-employed individuals, company directors, landlords and others are currently preparing their 2020 tax return in advance of the 17 November deadline. Every year Revenue update the self-assessment tax return forms and make changes that taxpayers need to be aware of, says TasAssist Accountants which has two offices in Cork. Here are five of the updates to the Form 11 for 2020 that TaxAssist Accountants say you need to know:
Extracts from accounts
For self-employed people who are engaged in a trade or profession, they must include a summary of their accounts, namely the Profit and Loss and the Balance Sheet, each year in the Form 11. Up to now only certain boxes in the extracts were mandatory and the remainder were optional. For 2020 tax returns, Revenue have updated their guidance on this so that:
• All fields are mandatory if sales are €20,000 or greater
• Where sales are less than €20,000, the existing mandatory fields marked with an asterix (*) remain
Where a taxpayer has indicated on the Form 11 that they are non-resident, and they have Irish rental income they now face an additional mandatory question. They will be asked:
• Is the tax return being completed by a collection agent; or
• If not the amount of tax withheld at source by the tenant
TWSS: A question has been added to the return to capture the amount of the Temporary Wage Subsidy Scheme received in the year.
DTWS: Direct Temporary Wage Subsidy is an additional TWSS subsidy payment paid directly to employees, which is subject to income tax and USC. A question is included in the return to show the DTWS.
Allowable deductions incurred in employment
For employees who have been working from home during the pandemic and who did not receive any compensation for light, heat and broadband costs from their employer, a question has been added to enable claims for expenses due in respect of remote working.
Stay and Spend tax credit
A new section for the Stay and Spend tax credit has been added.
You can claim the Stay and Spend credit for qualifying expenditure from 1 October 2020 on either:
• holiday accommodation
• eat in food and drink
Your accountant should be aware of all the new elements to the Form 11 and be able to guide you through it when they are filing your 2020 Tax Return.
For a free consultation with TaxAssist Accountants in Cork contact Terry O’Donovan on 021-2427576 in Blackpool or Clive Aherne in Washington Street on 021-2427447.