PAY & FILE DEADLINE

About 20% of self-employed taxpayers are likely to miss the impending pay-and-file deadline and will have to pay penalties as a result, The Sunday Business Post reports.

Delay can be very costly. There is a 5% surcharge on the amount of tax liable, subject to a maximum of €12,695 where the return is filed within two months of the deadline. If it is more than two months’ late, a 10% surcharge kicks in, with a maximum fine of €63,485 – although tax-geared penalties may amount to 100% of the liability.

Tax advisers and accountants such as Noone Casey are asking clients to get their paperwork in sooner rather than later.

The Irish Taxation Institute is warning that taxpayers face bigger bills this year and they should make the necessary provisions to allow for the increases in the income levy last year, restrictions on tax reliefs and the introduction of the Universal Social Charge since January.