Income tax returns

john mayo 10

Currently submitting tax returns on a small farm for 2016 for the parents. Dad recieved a pension last December that he had been paying into alk his life. I think he recieved in on the 30th of December. Do i need to put in these details or is ok to leave out

lakill Farm

john mayo 10 wrote: »

Currently submitting tax returns on a small farm for 2016 for the parents. Dad recieved a pension last December that he had been paying into alk his life. I think he recieved in on the 30th of December. Do i need to put in these details or is ok to leave out

Your doing them for your dad or for yourself?

If it’s for him it needs to be included

john mayo 10

Doing them for dad. Will he be taxed on them so? It was originally a private pension but he was advised to move them into a company pension last year before they matured to avoid paying tax on them. He has now fully retired and is in the process of signing over the farm to me. Last things he needs now is a bloody large tax bill

JeffKenna

john mayo 10 wrote: »

Doing them for dad. Will he be taxed on them so? It was originally a private pension but he was advised to move them into a company pension last year before they matured to avoid paying tax on them. He has now fully retired and is in the process of signing over the farm to me. Last things he needs now is a bloody large tax bill

Would you not get an accountant?

john mayo 10

I leaving it a bit late. Deadline is 2 weeks. I have all ready to submit. Being doing them for 10 years and no issues. This is a bit of a stumbling block though

Spanish Eyes

JeffKenna wrote: »

Would you not get an accountant?

If it is straightforward enough ROS is great to do on your own. But you have to know what you are doing aswell! I am assuming OP that you are filing and paying on ROS as paper filings were due yesterday + payment :eek:

Anyway the short answer to your question is that ANY income earned from whatever source in 2016 must be included, so that would appear include the private pension paid for the month of December 2016. That is when you said your Dad got first payment. PAYE/USC would be deducted at source, you should have a P60 for the figures.

Good news is, he can use Paye credits if he hasn't got any other Paye income.

The reality is though, as JeffKenna said, it is a minefield, so if you are lucky enough to find a tax advisor/accountant at this time of the year, it will probably be money very well spent.

exaisle

Spanish Eyes wrote: »

If it is straightforward enough ROS is great to do on your own. But you have to know what you are doing aswell! I am assuming OP that you are filing and paying on ROS as paper filings were due yesterday + payment :eek:

If you're doing the return on ROS you can download the pre-populated return for 2016. Details of any PAYE income should already be included. You should tick the boxes claiming the employee credit AND the earned income credit (you won't get all of both but you'll get as much as you're due)...you havent mentioned the amount of the pension but as an earlier poster says if your dad hasn't already claimed the employee credit that may cover the tax liability.
Also, be sure to include his age to get the age exemption over 65.. and especially if he's over 70 as he would pay a reduced rate of USC and tick the exemption for PRSI box if he's in receipt of a Social Welfare pension too...

JeffKenna

Spanish Eyes wrote: »

If it is straightforward enough ROS is great to do on your own. But you have to know what you are doing aswell! I am assuming OP that you are filing and paying on ROS as paper filings were due yesterday + payment :eek:

Anyway the short answer to your question is that ANY income earned from whatever source in 2016 must be included, so that would appear include the private pension paid for the month of December 2016. That is when you said your Dad got first payment. PAYE/USC would be deducted at source, you should have a P60 for the figures.

Good news is, he can use Paye credits if he hasn't got any other Paye income.

The reality is though, as JeffKenna said, it is a minefield, so if you are lucky enough to find a tax advisor/accountant at this time of the year, it will probably be money very well spent.

See I would have said that the pension payment the OP is referring to is the tax free lump sum. Would this still need to be included?

Bass Reeves

OP you meet to talk to an accountant or a financial advisor. Was it a pension lump sum or a continuous weekly/ monthly/ annual payment that your father reviewed. The revenue may advice you anyway if you can contact them.

john mayo 10

It was a pension lump sum he recieved.

Bass Reeves

john mayo 10 wrote: »

It was a pension lump sum he recieved.

If it was a pension lump sum it may or may not be taxable. I imagine it is not but you need to talk to a professional.

john mayo 10

Was talking to a man this evening regarding this. He is involved in pensions. Dads pension was a lump sum tax free so he said not to include it

Bass Reeves

john mayo 10 wrote: »

Was talking to a man this evening regarding this. He is involved in pensions. Dads pension was a lump sum tax free so he said not to include it

I be 99% sure he is correct however there are limits to lump sum draw downs which vary depending on income and being a paye earner or self employed. A 10-20 minute consultation with a finiancial professional with all the details at hand will clarify it all. However usually AFAIK pension lump sums are not handed out unless they are tax compliant but you should check.

lakill Farm

john mayo 10 wrote: »

Was talking to a man this evening regarding this. He is involved in pensions. Dads pension was a lump sum tax free so he said not to include it

Did he get a p60 for it?

Lot of questions I know. But need to have it right. No expression of doubt anymore

john mayo 10

Cheers. Will do

Green&Red

I've to do returns for my father. Where do I find what he got from the state pension? Or will that pop into a form in ROS for me?

lakill Farm

Green&Red wrote: »

I've to do returns for my father. Where do I find what he got from the state pension? Or will that pop into a form in ROS for me?

Call up either social welfare or Revenue if it’s not on the prepopulated form