Another tax year is now over and the impact of covid restrictions has meant that the completion of 2021 tax returns has rolled into the new tax year. All practitioners have experienced the same issue and we are grateful that Inland Revenue has adopted a very pragmatic approach by extending the processing deadline to 31 May.
For clients with trusts, it is important to note that Inland Revenue has additional reporting requirements commencing with the 2022 tax returns. Further information needs to be included on the trust IR6 income tax return, such as the trust’s financial position including a profit or loss statement as well as details of assets, liabilities and equity. Also required are details of settlements made by the trust and details about distributions made to beneficiaries. Given these additional reporting requirements, Please contact us if you are unsure whether your trust remains fit for purpose.
We are now Commencing the preparation of 2022 income tax returns and are hoping for a less disruptive year than last year. If you have been the recipient of any wage subsidies or covid 19 support payments, please ensure that you are proactive about informing us of the details. If these payments are not included in your income tax returns, there are likely to be delays experienced in processing the returns through Inland Revenue.
If you have any queries about whether any of the impending changes affect you, please don’t hesitate to get in touch with our office.
