Revenue released a new Tax and Duty Manual – Part 38-01-04E, which highlights updates and changes to the 2020 Form 11. The 2020 ROS Form 11 has been available since 1 January 2021 in both the online and offline ROS facilities.

The 2020 Form 11 reflects the changes introduced in the Finance Act 2020, including updated credits and rates, and other reporting requirements. The changes and additional questions and validations are referenced in the manual. Items that may be of interest are:

Non-resident landlords

A new question asks for confirmation that the form is being completed by a collection agent, or the tax was withheld by the tenant. Where the return is being completed by a non-resident landlord who does not have a collection agent acting on his or her behalf the second box should be ticked, even if the tenant did not withhold any tax. Where no tax was withheld by the tenant, the filer should make no entry in the field “Amount of Irish Tax Withheld”.

Calculation of TWSS liability

In relation to the BIK concession available until end September 2021, Appendix 3 of the manual includes guidance on determining if there is an underpayment of income tax and USC due to the TWSS. Employers must engage directly with employees and agree the value and method to pay the liability involved.

PAYE only taxpayers can review their Preliminary End of Year Statement for 2020 (in myAccount) to determine if there is an underpayment of income tax and USC due to the TWSS. Self-assessed employees cannot access a Preliminary End of Year Statement.

Two options are suggested for self-assessed employees or proprietary directors to determine if there is an underpayment of income tax and USC on TWSS income, and to calculate the value of it.

To apply the taxpayer’s marginal rate of tax (20% or 40%) and USC (0.5%, 2%, 4.5% or 8%) to the amount of TWSS received.

To use the Calculation facility in the 2020 Form 11.

This option of calculating the liability arising from TWSS income, requires a filer to do two ‘test’ Form 11 calculations. For example, a filer can input all the necessary information in his or her Form 11 return excluding the amount received for TWSS. For the second calculation a filer can add in the amount received for TWSS. Where the only difference between the 2 ‘calculations’ is the amount of TWSS income, the difference between the calculations is the income tax and USC due on that TWSS income.

Prefilled information

Appendix 2 includes a summary of prefilled information. Filers can choose to complete a pre-populated return in ROS online or offline options. The information provided on a pre-populated return is a prompt to assist filers, but the actual values input in the relevant fields on a return must be confirmed or validated by the filer.

Extracts from accounts

Changes have been introduced to the extracts from accounts section to minimise unnecessary contact with compliant taxpayers in relation around incomplete or incorrect data. These changes include mandatory fields and the addition of two ‘calculate’ buttons. Paragraph 3.2 and Appendix 1 include information on completing the extracts from accounts.

See Revenue eBrief No. 133/21 for further details.