Halloween is arriving and so is the Pay and File deadline for the 2009 tax return! Ads on the radio are shouting out ‘self-assessment’ and some of us automatically just switch off. If you are self-employed it is a must, but even PAYE employees could be claiming back some tax credits.But wait up… Maybe you should be filing a return? Perhaps you are entitled to tax back? Or maybe you should be filing a return and you don’t realise it. Remember, Revenue does not allow anyone to play the ‘ignorance’ card. The surcharges and penalties can be very nasty.
Tax Accountants and Consultants use words like ‘chargeable person’ ‘compliancy’ ‘rebate’ but in layman’s terms,
Who should file a tax return in Ireland?
- Self Employed
- An owner-director of a private company
- In receipt of payment from property in Ireland or abroad
- In receipt of investment income
The income levy which was introduced in 2009 is treated as income tax for the purposes of the self-assessment system, so if an outstanding liability exists, then you will need to file a tax return.
If you received a taxable gift or inheritance between 14th June 2009 and 31st October 2009, then you must file and pay the relevant tax before 31st October 2010
If you have disposed of assets (such as shares or property) during 2009, then any tax owing must be paid by 31st October 2010.
In theory there is no formal requirement to submit reporting documentation such as medical expenses at the time of filing for a ‘regular’ tax return, however, where there is a refund, Revenue could seek every item of supporting documentation.
What should be returned and when?
- Any balance of income tax owing for 2009
- Preliminary tax for the tax year 2010
Filing your tax return
If you file your tax return electronically, using the Revenue Online System (ROS), your pay and file deadline is extended to November 16th 2010. However, it could take up to 8 days to register if you are not done so previously.
Late filing can be costly. There is a 5% surcharge of the tax owed subject to a maximum of €12,700 if filed late, but before 31st December 2010. The surcharge is doubled to 10% after this date subject to a maximum of €63,500. You may also be subject to a tax-geared penalty.
Employed
PAYE workers with no other form of income do not have to file a return if they do not fall under the above categories. However, in a huge number of cases, individual are not claiming the correct credits.
Credit can be claimed for expenses on such items as trade union subscriptions i.e. if you are a member of a trade union. You can claim a tax credit of up to €70 (€350 x 20%) for the tax year.
A full list of tax credits is available on the revenue website www.revenue.ie and don't miss the Tax Credits and Reliefs page. A ten minute flick through this may be worth while.
Tax is a complex area and if you are preoccupied with running your business, it pays to have a professional look after your tax return. They may spot deductions that should have been claimed and will help in minimising your taxes. Everything counts, especially in the run up to Christmas.
Finally, make sure to sign the return, as an unsigned return is invalid.
Happy number crunching!!
by Lucinda Greaney AITI (Tax Accountant)
http://www.financialfactory.ie
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