Grant Thornton Ireland · Tax Time - Episode 8
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.
Tax developments
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:
Corporation Tax:
- December 2020 Accounting year ends: Filing of Form CT1 and payment of associated tax liability on or before 23 September 2021
- January 2021 Accounting year ends: Filing of Form CT1 and payment of associated tax liability on or before 23 October 2021
- February 2021 Accounting year ends: Filing of Form CT1 and payment of associated tax liability on or before 23 November 2021
- March 2021 Accounting year ends: Filing of Form CT1 and payment of associated tax liability on or before 23 December 2021
- Preliminary corporation tax payments:
- December 2021 Accounting year ends: Preliminary tax payment due to be made on or before 23 November 2021
- January 2022 Accounting year ends: Preliminary tax payment due to be made on or before 23 December 2021
Capital Acquisition Tax:
- Gifts and/or inheritances received in the period 1 September 2020 - 31 August 2021: File their Capital Acquisitions Tax return and pay any associated tax liability on or before the 31 October 2021.
- Gifts and/or inheritances received in the period I September 2021 - 31 December 2021: File their Capital Acquisitions Tax return and pay any associated tax liability on or before the 31 October 2022.
Income 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)
- Disposal of assets between 1 January 2021 - 30 November 2021: Payment due on or before 15 December 2021.
- Disposal of assets made in December 2021: Payment due on or before the 31 January 2022.
- All disposals during 2021 should be reflected in the individuals income tax return for 2021.
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.
Pension planning considerations
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.
- Pensions are the most tax efficient investment vehicle available to individuals.
- The income tax filing deadline for 2020 falls on 31 October, or 17 November if you pay and file online. Contributing to a pension can lower your tax bill for 2020.
- Companies may have greater scope to fund pensions on behalf of employees, but the tax treatment may vary depending on the size of the contributions.
- There is no one size fits all approach to pension funding. Everyone should seek expert advice.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
