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

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 TOP TIP

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.