Introduction
Major changes in Tax Year 2021
Major changes include several new tax fields and subsections to be filled in where applicable under
- Self Employed Income
- Tax field for- Relief for Partner in Registered Farm Partnerships under Sr. 667C used in 2020
- Tax field for- Relief for Partner in Registered Farm Partnerships under Sr. 667C used in 2019
- Foreign Income
- Tax field for- Gross Income from Foreign Employments attributable to the performance outside the state of such employments- on which Transborder Relief is not claimed and on which no foreign tax was deducted
- Capital Gain
- Tax field for Current Year Loss(es) from prior year(s) for carry forward to 2022
- Tax field for Unused Loss(es) from prior year(s) for carry forward to 2022
- PAYE/BIK/Pension (2)
- Tax field for Utility allowed (10% of gross amount)
- Tax field for Broadband allowed (30% of gross amount)
- Tax field for Days worked remotely
- Personal Tax Credit
- Tax field for- If you wish to claim widowed person, or surviving civil partner, with dependent child tax credit state date of death of your spouse (DD/MM/YYYY)
Minor changes in Tax Year 2021
Minor changes have been made to the following areas for the Tax Year 2021:
- Personal Details (Chargeable Person)
- Checkbox for Trading Income (no PAYE income)
- Checkbox for PAYE income, and other non-PAYE income over €5,000(net)
- Checkbox for PAYE income, and other non-PAYE income over €30,000(gross)
- Checkbox for Proprietary Director
- Checkbox for Opened a Foreign Bank account in the tax year
- Checkbox for Share options granted
- Checkbox for Foreign Income only
- Checkbox for Rental Income only
- Checkbox for Other non-PAYE income only (dividends, deposit interest etc)
- Checkbox for None of the above but you wish to file a Form 11
- Personal Details (Self)
- Tax field for Name of the personal representative (i.e. executor, administrator, etc)
- Tax field for Address of the personal representative
- Foreign Income (Foreign Bank Accounts)
- Tax field for more than twenty Foreign Bank accounts
- Foreign Income (Foreign Life Policies)
- Subsection for more than twenty Foreign Life Policies
- Foreign Income (Offshore Funds)
- Subsection for more than twenty Offshore funds
- Foreign Income (Other Offshore Products)
- Subsection for more than twenty Other Offshore Products
SELF-EMPLOYED INCOME
FARM PARTNERSHIP DETAILS
The Self-Employed Income section has new details added under Farm Partnership Details. The changes have been added under the Add Details hyperlink. The filer needs to click on the Add Details hyperlink under the Farm Partnership Details to fill in the details. The process of navigation can be identified below. The user of the same needs to click on the highlighted section of Figure 1 to reach Figure 2. After clicking Add Details, the filer can add the required details for different Reliefs such as Relief for qualifying farmer under Sr.667B used in 2021, Relief for qualifying farmer under Sr.667B used in prior years, etc. The new changes made reflect the requirement for the Relief for Partner in the Registered Farm Partnership. The two Tax Fields added are listed below:
- Relief for a partner in Registered Farm Partnerships under Sr. 667C used in 2020
- Relief for a partner in Registered Farm Partnerships under Sr. 667C used in 2019
Figure 1: Click on the “Add Details” hyperlink under farm Partnership Details
Figure 2: New section under Farmers Self Employed Income
FOREIGN INCOME CHANGES
FOREIGN EMPLOYMENTS
In the recent version, a new sub-section has been introduced. The section is predominantly for the use of Foreign Employments. This refers to any employment outside the area on which Transborder Relief is left unclaimed. Thus, the sub-section lets the tax filer enter details of Self and Spouse about the current and last year. The change is shown below:
- Gross Income from Foreign Employments attributable to the performance outside the state of such employments – on which Transborder Relief is not claimed and on which no foreign tax was deducted
Figure 3: New subsection for Foreign Employments
CAPITAL GAIN CHANGES
In the upgraded version, a new sub-section has been introduced. The section is primarily for the detailed addition of gains, losses and net chargeable gains. Thus, the sub-section lets the tax filer enter details of Self and Spouse about the current and last year. The addition can be found under Claims to Relief which is listed below Capital Gain. The two extra changes added are listed below:
- Current Year Loss(es) from the prior year(s) for carry forward to 2022
- Unused Loss(es) from the prior year(s) for carry forward to 2022
Figure 4: New subsection for Capital Gains
PAYE/BIK/PENSION (2) CHANGES
In the upgraded version, a new sub-section has been introduced. The section is primarily for the detailed addition of Allowable Deductions Incurred in Employment. Thus, the sub-section lets the tax filer enter details of Self and Spouse about the current and last year. The addition can be found under Allowable Deductions Incurred in Employment which is listed under PAYE/BIK/Pension (2). The extra changes added are listed below:
- Utility allowed (10% of the gross amount)
- Broadband allowed (30% of the gross amount)
- Days worked remotely
Figure 5: New subsection for PAYE/BIK/Pension (2)
Personal tax credit changes
In the upgraded version, a new sub-section has been introduced. The section is for the addition of the Date in the form of DD/MM/YYYY. The new Tax Field that has been introduced allows the filer to put in the date of demise if the filer was claiming as a surviving civil partner with dependent child tax credit or a widowed person with dependent child tax credit. The extra change added is listed below:
- If you wish to claim widowed person with dependent child tax credit or surviving civil partner with dependent child tax credit state date of death of your spouse (DD/MM/YYYY)
Figure 6: New subsection for Personal Tax Credit
Personal details
Chargeable person
In the recent version, a new sub-section has been introduced. The section is predominantly for the use of Chargeable Person This refers to a person who is required to pay a tax charge on his or another’s account. Every Chargeable Person is required to fill up Form 11. Thus, the sub-section lets the tax filer confirm why they are a Chargeable Person or are filing for one. The filer of the same can choose as many of the reasons listed as applicable. The reasons one can choose for being a Chargeable Person are listed below:
- Trading Income (no PAYE income)
- PAYE income, and other non-PAYE income over €5,000(net)
- PAYE income, and other non-PAYE income over €30,000(gross)
- Proprietary Director
- Opened a Foreign Bank account in the tax year
- Share options granted
- Foreign Income only
- Rental Income only
- Other non-PAYE income only (dividends, deposit interest etc)
- None of the above but you wish to file a Form 11
Figure 7: New subsection for Chargeable Person
PERSONAL DETAILS SELF
The Personal Details (self) section has Tax Fields for the entry of all required personal details that are required while filing taxes. It has Tax Fields for Name, PPS No, Agents TAIN, Client Reference No, Civil Status, Marital Status and its changes (if applicable), No. of dependent children, DOB etc. For completing the return on behalf of a deceased individual section two new fields have been added. The two Tax Fields added are listed below:
- Name of the personal representative (i.e., executor, administrator, etc)
- Address of the personal representative
Figure 8: New section under Personal Details
FOREIGN INCOME CHANGE
FOREIGN BANK ACCOUNTS
In a situation, the filer of the tax return has any sort of Foreign Income, then a few more appropriations and detail entries come into play. If a filer has less than 20 entries under Foreign Bank Accounts; then the newly implemented change does not appear. The filer sees the window as it is displayed in Figure 9. However, if the filer of the tax crosses the limit of 20 entries: then from the 21’st entry, the new change becomes visible. The change implies that if the tax filer opens more than twenty foreign bank accounts, then they must enter the total amount deposited for the opening on the remaining accounts. This change can be seen in Figure 10. The change reflects as a box that states the below:
- For more than twenty Foreign Bank Accounts
Figure 9: Foreign Bank Accounts Under Twenty Entries
Figure 10: Foreign Bank Accounts Over Twenty Entries
FOREIGN LIFE POLICIES
In a situation, the tax filer has Foreign Income, then a few detailed entries are required to be filled. If the user has less than 20 entries under Foreign Life Policies; then the newly implemented change does not appear, and Figure 11 is displayed. However, if the user crosses the limit of 20 entries, from the 21’st entry, the implemented change becomes visible. The addition states that if the user has more than twenty foreign life policies, then they must enter the total amount of the remaining policies in the linked panel. The linked panel refers to the hyperlink that is enabled from the twenty-first entry. This change can be seen in Figure 12. Once the blue link appears, the user can click on it. Once it is clicked, a new window appears. The window is shown below in Figure 13. The user needs to enter details for more than twenty foreign life policies as mentioned below:
- Payment taxable at 41% (S.730J (a) (i) (II))
- Payment (personal portfolio) taxable at 60% (S.730J(a)(i)(I))
- Gain (personal portfolio) taxable at 60% (S.730K(1)(a)(i))
- Gain taxable at 41% (S.730K(1)(a)(ii))
Figure 11: Foreign Life Policies Under Twenty Entries
Figure 12: Hyperlink after 20 entries under Foreign Life Policies
Figure 13: Entries for more than twenty Foreign Life Policies
OFFSHORE FUNDS
In a situation, the tax filer has Foreign Income, then a few detailed entries are required to be filled. If the user has less than 20 entries under Offshore Funds; then the newly implemented change does not appear, and Figure 14 is displayed. However, if the user crosses the limit of 20 entries, from the 21’st entry, the implemented change becomes visible. The addition states that if the user has more than twenty offshore funds, then they must enter the total amount of remaining funds in the linked panel. The panel refers to the hyperlink that is enabled from the twenty-first entry. This change can be seen in Figure 15. Once the blue link appears, the user can click on it. Once it is clicked, a new window appears. The window is shown below in Figure 16. The user needs to enter details for more than twenty offshore funds as mentioned below:
- Payment taxable at 41% (S.747D (a)(i)(II))
- Payment (personal portfolio) taxable at 60% (S.747D (a)(i)(I))
- Gain taxable at 41% (S.747E(1)(b)(II))
- Gain (personal portfolio) taxable at 60% (S.747E(1)(b)(i)(I))
Figure 14: Offshore Funds Under Twenty Entries
Figure 15: Hyperlink after 20 entries under Offshore Funds
Figure 16: Entries for more than twenty Offshore Funds
OTHER OFFSHORE PRODUCTS
In a situation, the filer of the tax return has any sort of Foreign Income, then a few more appropriations and detail entries come into play. If a filer has less than 20 entries under Other Offshore Products; then the newly implemented change does not appear. The filer sees the window as it is displayed in Figure 17. However, if the filer of the tax crosses the limit of 20 entries: then from the 21’st entry, the new change becomes visible. The change implies that if the tax filer has acquired a material interest in more than twenty Other Offshore Products, then they must enter the total payment made in acquiring the material interest. This change can be seen in Figure 18. The change reflects as a box that states the below:
- For more than twenty Other Offshore Products
Figure 17: Other Offshore Products Under Twenty Entries
Figure 18: Other Offshore Products Over Twenty Entries
Sections and tax fields removed from the tax year 2021
To comply with Revenue, we have removed the following Tax Fields from the Relate Personal Tax Manager 2021.
Tax field removed from [Personal Tax Credits]
- All Tax fields under Employment and Investment Incentive- Shares issued on or after 8 October 2019 and on or before 31 December 2019 were deducted
- All Tax fields under Employment and Investment Incentive- Shares issued before 8 October 2019 were deducted
Tax field removed from [Self-Employed Income]
- Tax field Relief for a partner in Registered Farm Partnership under 667C used in prior years was deducted
Tax field removed from [Personal Details]
- Tax field Enter the name of the personal representative (i.e. executor, administrator, etc) was deducted
- Tax field If you wish to claim widowed person, or surviving civil partner, with dependent child tax credit state date of death of your civil partner (DD/MM/YYYY) was deducted