Is now the time to take the bull by the horns?

Is now the time to take the bull by the horns?
By Michelle McManus, Tax Manager, Contracting PLUS

Some people can be surprised when I ask “Did you sell any assets?” but the number of clients with an element of share or currency trading has increased tenfold and it’s not just the usual suspects either. For some lucky individual’s, Covid-19 has curtailed their expenditure and left them with spare cash to dabble with. Coupled with the rise of online trading platforms and low interest rates on savings, it can be a route to making some virtual or real cash for those that can afford the risk.

Many of my clients moved from employment to Contracting and brought a shareholding with them. Their previous employers automatically transferred their shares to online platforms and enabled the individual to explore other shares or securities long after the employment ended.

It all seems straightforward, but the catch is that you need to budget for the tax you will have to pay on any gains you make.

Gains on the disposal of shares or cryptocurrencies (over the annual allowance of €1,270) for most people are liable to Capital Gains Tax (CGT) at 33%. Any losses incurred can be offset against current or future gains.

For Independent Contractors and other self-employed individuals, the details must be recorded on your annual Income Tax Return (Form 11) and filed through Revenue’s Online System (ROS).

Another potential CGT surprise is that the payment dates are much earlier than the Income Tax deadline. The tax due on gains made in the first 11 months of the year (i.e. up to 30 November) is payable on 15th December of the same tax year! The tax due on December gains is payable on 31st January in the following tax year, just one month later.

So, if you do decide to dabble and you make some gains, don’t forget to let us know and we will ensure the information is correctly reflected in your Tax Return

Tax should not be a driver as to how you live your life. Understanding the system and insightful planning can make that financial difference for you and your family.

So what’s your story? Call 01 6381870 today and tell us…

Contracting PLUS – Making Your Tax Returns Simple


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