There are two important deadlines coming up in the next few weeks. The first is the Capital Gains Tax deadline on the 31st January 2016. If you disposed of an asset during 2015 then you would need to pay any capital gains tax due before the 31st January 2016. Examples of common assets would be land, property, shares etc. If the asset was disposed of between 1st January 2015 and the 30th November 2015, the tax would have been due by the 15th December 2015. If the asset was disposed of between the 1st December 2015 and the 31st December 2015, the tax is due to be paid by the 31st January 2016.
When calculating the payment due, you should include all disposals made during 2015 to establish your full liability for the year, and then any tax amount already paid should be deducted from that liability. There is no need to file a return at this point, only the payment of the tax is due. A return detailing the assets disposed of will be due by the 31st October 2016. If you are required to file an annual tax return then you would include the details in the appropriate section. If you are not required to file a tax return, you should file a form CG1 by the appropriate date.
Another deadline fast approaching is the P35 deadline on the 15th February 2016. If you employed any staff in 2015, or if you are a company director and your company is registered as an employer you will need to file this return. Employers who don’t submit a P35 return by the deadline could face penalties of up €4,000 and may also run the risk of a tax audit so it’s really not one you want to miss. If you file and pay online the deadline is extended to the 23rd February 2016.
The P35 form gives details of all tax deducted from your employees during the year. Specifically, it details all Income Tax, Employers’ and Employees’ PRSI and the Universal Social Charge. The form should include the names and details of all employees who worked for you during 2015, even those who are no longer working for you. If there is a shortfall in the amount you paid during the year, this will have to be paid along with the P35 Return.
A common pitfall that can catch out employers when completing their P35 Return is using the wrong PPS numbers for Employees. If a PPS number is invalid, the P35 Return will be rejected by the Revenue Commissioners so it’s a good idea to check all employees’ PPS numbers well in advance of the submission date.
As well as submitting the P35 form it’s important to note that as an employer you need to provide a P60 to all staff who were in your employment on the 31st December 2015. Anyone who left before this date does not need a P60 from you as you would have already provided them with a P45.
Finally another important issue to consider is employee tax credits. At the beginning of the year Revenue issued new tax credit certificates for all employees, and as there have been changes this year it’s important that you update your payroll system to reflect these.