Income Tax Administration
- Self Assessment – Pay and File
- Payment and Compliance
- Joint Assessment
- Pay and File Summary
- Information included in Return
- Late Filing of P.A.Y.E. Returns
- Registration of Foreign Employers
On the 31 October each year, a self-employed individual/company director, PAYE worker with untaxed non PAYE income will be required to:
- Make his/her Income Tax Return for the previous calendar year;
- Pay the balance of tax for the previous calendar year; and
- Make a Preliminary Tax payment for the current calendar year.
- Submit a tax computation at the time of filing the return.
The self-assessment system applies to individuals with non-PAYE income and to all directors controlling 15% or more of the share capital of a company (even if their entire income is subject to PAYE).
The definition of a “chargeable person” for self assessment purposes includes PAYE taxpayers with non PAYE income where the non PAYE income is not taken into account under the PAYE system.
The ‘Pay & File’ system places an obligation on the individual to file a return, calculate the tax liability, and pay the tax due. Returns for income arising in the year ended 31 December 2016 must be filed on or before 31 October 2017 to avoid a surcharge. The surcharge amounts to 5% of the amount of tax payable for the period subject to a maximum surcharge of €12,695, where the return is filed within two months of the deadline. Otherwise if the return is filed more than 2 months after the deadline, a surcharge of 10% is imposed subject to a maximum of €63,485.
Preliminary tax due for the tax year 2017 must be paid by 31 October 2017 if interest charges of .0219% per day are to be avoided. The tax paid must represent 90% of the individual’s actual liability for 2017 or 100% of the final liability for 2016 (excluding EIIS relief).
Alternatively, for the tax year 2017, a taxpayer can elect to make a preliminary tax payment equal to 105% of the ultimate liability for 2015 (the pre-preceding year), provided a liability arose in that year. This option is only available to taxpayers that pay by direct debit in equal monthly installments. The final installment is payable in December 2017. Where a taxpayer is paying by direct debit for the first time, payment can be made by way of a minimum of three equal installments, and during the following year by way of eight equal installments.
Where the repayment is made due to a Revenue error in applying the legislation, interest will be repaid from the date the tax was paid to the date of repayment otherwise no repayment is due. Refunds of overpayments of preliminary tax carry interest of 0.011% per day .
Tip: The 2016 tax return is due to be filed by 31 October 2017, where your total income for 2017 is less than that in 2016, consider basing your preliminary tax payment on your 2017 estimated liability.
Penalties will apply to any late returns filed late.
Revenue may recover tax not paid within 28 days from the spouse who was not assessed. This is limited to the amount of unpaid tax referable to that spouse’s income.
The following is a summary of pay and file dates for the year 2017
- File tax return for 2016 — 31 October 2017
- Pay capital gains tax for 2016 –
- 1 December–31 December 2016 — 31 January 2017
- 1 January-30 November 2017 — 15 December 2017
- 1 December-31 December 2017 — 31 January 2018
- Pay balance of tax for 2016 — 31 October 2017
- (Online Pay & File date for 2016 Tax Return) — November 2017 TBC*
- Pay preliminary tax for 2017 — 31 October 2017
- (Online Pay & File date for 2017 Preliminary Tax) — November 2017 TBC*
* Revenue have not yet announced the online filing date for 2015 at the time of publication.
Taxpayers are required to disclose information in relation to any relief’s claimed in their annual tax return, the relief’s to be detailed are highlighted on the return forms. This will apply to individuals, both self-employed and employees and also to companies.
Failure to provide the relevant information may result in a penalty of €950, as well as a surcharge of:
- 5% of the tax due subject to a maximum of €12,695 where the return is filed within two months of the filing deadline
- 10% of the tax due subject to a maximum of €63,458 – where return is filed more than two months after the filing deadline.
Certain transactions which have the main benefit of obtaining a tax advantage are reportable to Revenue.