In the July Stimulus Plan, the Government announced a range of tax, loan and expenditure measures.
For those self-employed
For self-employed individuals, who were profitable in 2019 but due to Covid-19 are now operating at a loss in 2020 will provide a new once-off tax relief of up €25,000 of 2020 losses and unused capital allowances to off-set against 2019 profits. If 2020 accounts are not yet complete, estimated losses can be carried back as relief against 2019 profits, subject to certain conditions.
Therefore, by reducing your 2019 liability due in addition to Preliminary tax already paid, a refund may be due.
An additional measure included in the July Stimulus Plan was Corporation tax loss relief for companies. This will accelerate repayments of corporation tax that would otherwise become due over the next 18 months, providing liquidity supports for businesses through tax refunds. This will allow companies to estimate their trading losses and make an early claim to carry back those losses against profits in the preceding accounting period. A company can revise its claim as the accounting period progresses, and increase their claim if losses are higher than originally stated.
Please note this article is for information purposes and does not constitute advice. Details correct at time of publishing.
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