SELF ASSESSMENT FOR INDIVIDUALS
- 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:
- File his/her Income Tax Return for the previous calendar year;
- Pay the balance of tax for the previous calendar year; and
- Pay 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 nonPAYE 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
The “Pay and File” system places an obligation on the individual
to file a return, calculate the tax liability, submit a tax
computation and pay the tax due. Returns for income arising in
the year ended 31 December 2020 must be filed on or before 31
October 2021 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 two months after the deadline, a surcharge of 10% is
imposed subject to a maximum of €63,485.
Preliminary tax due for the tax year 2021 must be paid by 31
October 2021 if interest charges of .0219% per day are to be
avoided. The tax paid must represent 90% of the individual’s
actual liability for 2021 or 100% of the final liability for 2020
(excluding EII relief).
Alternatively, for the tax year 2020, a taxpayer can elect to make
a preliminary tax payment equal to 105% of the ultimate liability
for 2018 (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 instalments. The final instalment
is payable in December 2020. Where a taxpayer is paying by
direct debit for the first time, payment can be made by way of a
minimum of three equal instalments and, during the following
year, by way of eight equal instalments.
Where a 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 2020 tax return is due to be filed by 31 October
2021; where your total income for 2021 is less than that
in 2020, consider basing your preliminary tax payment
on your 2021 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
File tax return for 2020 . . . . . . . . . . . . . . . . .31 October 2021
Pay balance of tax for 2020 . . . . . . . . . . . . .31 October 2021
Online Pay & File date for
2020 Tax Return . . . . . . . . . . . . . . . . 12 November 2021 TBC
Pay preliminary tax for 2021 . . . . . . . . . . . .31 October 2021
Online Pay & File
date for 2021 Preliminary Tax . . . .12 November 2021 TBC
Pay Capital Gains Tax
-1 December to 31 December 2020 . . .31 January 2021
-1 January to 30 November 2021 . . .15 December 2021
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.