This podcast was recorded on 24 August 2021.
David Moran, Tax Manager with Grant Thornton is joined by Liam Naughton, Associate Director with our Private Client department in Grant Thornton.
David discusses the latest in tax. Liam shares his insights into the pension planning process, how it can reduce your income tax bill, what to look out for when investing in a pension and also ways of funding your pension pot.
Upcoming Pay and File Deadlines
The end of August kickstarts the busy tax compliance season for taxpayers and practitioners. With this in mind, we have briefly outlined some of the various direct tax filings and payment dates due in the coming months:
Capital Acquisition Tax:
2020 Calendar Year: File the return (including capital gains) and pay any associated tax liability on or before the 31 October 2021. Individuals are also required to pay their preliminary tax for the calendar year 2021 on this date.
This filing date is extended to 17 November 2021 as per the Revenue’s eBrief released on 8 April 2021. However, to avail of this extended deadline, the taxpayer must pay and file by this date on ROS. Where only one action is completed, i.e. either pay or file, the extension is not available.
Trusts and Estates: File their 2020 Income Tax return and pay any associated tax on or before the 31 October 2021.
Partnerships: File their 2020 Income Tax return on or before the 31 October 2021.
Capital Gains Tax (Individuals)
Employer’s Share Awards Return
Revenue released a new share scheme return known as the Employer’s Share Awards Return or Form ESA with respect to certain share based remuneration, including; Restricted stock units, restricted shares, convertible shares, forfeitable shares, discounted shares and any other award with cash-equivalent of shares.
This new Form will apply for the tax year 2020 and onwards, with the 2020 return due to be filed on or before 31 August 2021. For subsequent years, the reporting dates of the Form ESA will be due to be filed on or before 31 March following the relevant tax year, in line with other share scheme reporting obligations, e.g. KEEP1, RSS1 and ESS1.
Annual Taxation Report
Minister for Finance, Paschal Donohoe TD published the Annual Taxation Report on 10 August which looks back on the developments in taxation receipts and the impact Covid 19 has had on the exchequer.
The report notes that tax revenues fell by just 3.6% last year, which is compared to a fall of nearly one third during the Global Financial Crisis.
See link below for commentary from Peter Vale, Tax Partner with Grant Thornton on the Taxation Report:
EWSS Eligibility Review Form
Revenue issued guidelines in July regarding the new EWSS Eligibility Review Form that is required to be submitted to Revenue via ROS to ensure continued eligibility for the scheme.
Revenue have noted that there is an increase in the number of Eligibility Review Form filings before the deadline; however, there is still a considerable number of forms not filed with respect to June and July. Revenue noted that they will continue to pay the EWSS subsidies in the short term; however, all payments will stop from 1 September where employers have not filed the June and July Eligibility Review Forms.
It is expected that Revenue will write to as many employers as possible to remind them of their obligation to file the Eligibility Review Form to ensure that they remain entitled to the EWSS subsidy.
For employers who have become ineligible for EWSS or who wish to stop claiming the subsidy they should de-register for EWSS on ROS via the Manage Tax Registration function.
Liam Naughton, Associate Director in the Grant Thornton Private Client team, discusses the importance of pension planning, how your pension can be used to reduce your 2020 Income Tax liability in the coming months, how to fund a company pension through employer contributions, and other key issues to be aware of when retirement planning.