Updated versions of the Income Tax return-Form 11 2010 and the Corporation Tax return – CT1 2011 were recently made available on ROS.

Form 11 Updates

Where an individual wishes to pay preliminary tax on the basis of 100% of their 2010 liability, his or her preliminary tax payment is to be based on the final liability for the year 2010 as if the Universal Social Contribution (USC) had been payable and as if the income and health levies had not been payable for that year. The updated ROS Form 11 has been amended to show the 2010 liability as adjusted for 2011 preliminary tax purposes.

The Retirement Annuity Contract mini-calc in ROS has been amended to take account of the reduction to the earning limit to €115,000 for contributions paid between 1 January 2011 and 31/10/2011.

CT1 Updates

The ROS Form CT1 2011 has been updated to incorporate a small change to the input validation rules for unused Trading Losses Forward from an earlier accounting period. This corrects an error which didn't allow the input of the correct amounts where there was more than one trade in the company.

Further details on the recent updates to the Form 11 2010 and the CT1 2011 are set out in Revenue's eBrief No. 41/11 which is available on here.

Two Issues with ROS CT1 2011

The first issue concerns the calculation of manufacturing relief where there are any of the following deductions: excess management expenses, excess deductions, excess case V capital allowances, and excess non-trade charges.

The second issue arises when claiming group relief on a value basis, the amount of the relief to be claimed must be shown as an excess relief in the trade panel. The Form CT1 will automatically offset any group relief claimed in the trade panel against any other trade income in that panel before calculating any excess loss available on a value basis.

Further information on these issues and the approach to be adopted in dealing with them is set out in Revenue's eBrief No. 44/11 which is available on here.