Panel B: In­come from trades (in­clud­ing farm­ing and part­ner­ships), pro­fes­sions or vo­ca­tions — pages 4 to 9

Sunday Independent (Ireland) - Business & Appointments - - FRONT PAGE - TOP TIP

IF you are self-em­ployed, you must re­port your self-em­ployed in­come in Panel B. Gen­er­ally, you are as­sess­able on your tax-ad­justed net profit for a 12-month ac­count­ing pe­riod end­ing in 2016 e.g. if your ac­counts are nor­mally pre­pared for the year end­ing on Septem­ber 30, then the as­sess­able prof­its to be re­ported on the 2016 Form 11 will be those for the year ended Septem­ber 30, 2016.

If you have three or more trades/pro­fes­sions, you should com­plete the first two main trades in the Pri­mary Trade and Trade 2 col­umns and then ag­gre­gate the re­main­ing trades into the Trade 3 col­umn.

If you are a part­ner, you do not need to com­plete the Ex­tracts from Ac­counts sec­tion in your Form 11 as the part­ner­ship files this in­for­ma­tion in the Part­ner­ship Tax Re­turn, the Form 1 (Firms). You should en­ter the rel­e­vant part­ner­ship tax ref­er­ence num­ber at line 124.

There are com­plex rules re­gard­ing the cal­cu­la­tion of prof­its and losses where you have com­menced or ceased a trade dur­ing the tax year; you should seek pro­fes­sional tax ad­vice in this re­gard. EX­TRACTS FROM AC­COUNTS The main part of Panel B is the Ex­tracts from Ac­counts sec­tion (lines 121 to 157). You are not re­quired to at­tach your fi­nan­cial state­ments or in­come and ex­pen­di­ture ac­counts to the Form 11. How­ever, you should pre­pare them and re­tain them for six years as they may be re­quested by the Rev­enue Com­mis­sion­ers at a later date.

If the Rev­enue Com­mis­sion­ers are not sat­is­fied with the Ex­tract from Ac­counts sec­tion, they will re­turn the Form 11 to you to cor­rect the er­rors and you may be levied with a late fil­ing sur­charge, so it is vi­tal that you give this sec­tion of the Form 11 due care and at­ten­tion. As the Ex­tract from Ac­counts sec­tion is quite de­tailed and com­plex, the Rev­enue Com­mis­sion­ers will al­low in­no­cent er­rors but this does in­crease your chance of a Rev­enue au­dit. LOSSES & CAP­I­TAL AL­LOWANCES You can use un­used trad­ing losses from a prior year against prof­its of the same trade in the cur­rent (2016) ac­count­ing pe­riod. You can also elect to use any trad­ing loss in­curred in the cur­rent (2016) ac­count­ing pe­riod against other in­come in 2016 and can en­ter this at line 116.

There are var­i­ous dif­fer­ent types of cap­i­tal al­lowances that can be claimed for cap­i­tal ex­pen­di­ture on cer­tain types of busi­ness as­sets and premises.

The rate at which the cap­i­tal al­lowances can be claimed de­pends on when the ex­pen­di­ture was in­curred or when the building was con­structed.

The cap­i­tal al­lowances are de­ducted from your profit fig­ure be­fore you are taxed on it and any un­used cap­i­tal al­lowances can be car­ried for­ward against fu­ture prof­its of the same trade.

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