Five things you need to know about tax, 26 February 2021

Feb 26, 2021

In Irish tax developments, Stage 2 of the Temporary Wage Subsidy Scheme (TWSS) reconciliation process will commence in mid-March and the CCAB-I requests guidance on how to calculate the TWSS tax an employer can pay on behalf of an employee. On the UK front, HMRC has announced that the 2019/20 Self-Assessment 5 percent late payment penalty won’t be charged if the relevant tax is paid by 1 April 2021 or a Time to Pay arrangement is in place by that date. While in international tax, the European Commission seeks feedback on implementing rules for VAT e-commerce.

    Ireland

  1. Revenue confirmed that Stage 2 of the TWSS reconciliation process will commence in mid-March and employers will have until the end of June 2021 to review their reconciliation down to payslip level;
  2. The CCAB-I requested for Revenue to provide guidance on how to calculate the TWSS tax an employer can pay on behalf of an employee;

    UK

  3. HMRC has announced that self-assessment (“SA”) taxpayers will not be charged the initial 5 percent late payment penalty if they pay their tax or make a Time to Pay arrangement by 1‌‌ April 2021;
  4. From 1 March 2021, the construction sector domestic VAT reverse charge comes into operation; and

    International

  5. The European Commission requests feedback on implementing rules for VAT e-commerce.

Keep up to date with all the latest in Irish, UK and international tax developments through Chartered Accountants Ireland’s Tax Newsletter.