Income from Trades (including farming and partnerships), Professions or Vocations – Pages 5 to 8
If you are self-employed, you must report your self-employed income in Panel B. If you or your spouse has more than one trade, profession or vocation, you need to indicate that at the top of page five of the Form 11, and report the additional one in appendix one on pages 37-40.
If you have more than two trades, you are required to tick the box to reflect that at the top of page 37, and complete an appendix one for each additional trade, profession or vocation.
Generally, you are assessable on your tax adjusted net profit for a 12-month accounting period ending in 2018, e.g. if your accounts are normally prepared for the year ending on September 30, then the assessable profits to be reported on the 2018 Form 11 will be those for the year ended September 30, 2018.
The previous relevant contract tax (RCT) question was replaced by line 103, in which you are required to confirm whether the trade includes relevant operations for the purposes of RCT.
If you are a partner, you do not need to complete the ‘Extracts from Accounts’ section on 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 126.
Line 126 (c) has been added, whereby if you are in a partnership with your spouse/civil partner and the accounts information has been submitted under their trade number, you can enter that trade number on the Form 11.
Lines 119 and 120 are specific to farmers. Where possible, scheme payments from the Department of Agriculture, Food and Marine will be pre-populated into the ROS version of the Form 11.
There are complex rules regarding the calculation of profits and losses, where you have commenced or ceased a trade during the tax year — if relevant, 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 123 to 159). 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 ‘Extracts 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 ‘Extracts 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 (2018) accounting period. You can also elect to use any trading loss incurred in the current (2018) accounting period against other income in 2018, and you 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.