Questions and Answers

What’s new in the 2020 Tax Form?

Is there anything new this year when I am filing my tax return? What should I look out for?

Every year Revenue update the self-assessment tax return forms. Here are 5 of the updates to the Form 11 for 2020 that you should be aware of:

1. 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.

Great care should be taken when completing the extracts from accounts as Revenue use this information to spot any anomalies compared with people in the same industry or information already in their system. Any unexplained difference can result in Revenue taking a closer look at your accounts!

2. Non-Resident Landlords

Where a taxpayer has indicated on the Form 11 that they are non-resident and they have Irish Rental Income then they will be faced with an additional mandatory question in the 2020 return.

They will be asked to confirm:

Is the tax return being completed by a collection agent; or
If not the amount of tax withheld at source by the tenant.

There is a long standing rule in Irish law that non-resident landlords must appoint an Irish tax resident person/entity to act as a collection agent for the rent in order to receive 100% of the gross rent from the tenant.

In the absence of appointing an agent the tenant is obliged to deduct 20% of the gross rent and pay it directly to Revenue.

This is a rule that was seldom enforced up to now but in adding this mandatory question it looks like Revenue will be paying more attention to it going forward.

3. COVID-19 Supports – TWSS/DTWS

TWSS: A question has been added to the return to capture the amount of the Temporary Wage Subsidy Scheme (TWSS) received in the year.

DTWS: Direct Temporary Wage Subsidy (DTWS) 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.

4. 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.

The allowable amount should be entered in the form.

Relief is available for up to: 10% of utility bills (heat and electricity), and 30% of broadband.

5. Stay and Spend tax credit

A new section for the Stay and Spend tax credit has been added to the form.

You can claim the Stay and Spend credit for qualifying expenditure from 01 October 2020 on either:

holiday accommodation
eat in’ food and drink.

The minimum spend is €25 per transaction.

A qualifying service provider must provide the service. Qualifying service providers are those who have registered with Revenue to participate in the scheme.

The maximum tax credit available under the scheme is €125 per person or €250 for married couples.

We can help

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. At TaxAssist Accountants we have worked with thousands of individuals across Ireland on their tax returns. If you need assistance filing your income tax return you can call us on 01 969 6200 or submit an enquiry online to book your free initial consultation.

Book your FREE Initial Consultation

Date published 26 Oct 2021 | Last updated 27 Oct 2021

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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