With the 31 October tax deadline fast approaching, now is the time to get your tax affairs in order.
31 October 2017 is the income tax filing deadline for taxpayers, typically the self employed and company directors, to file their 2016 income tax return.
There is an extended deadline of Thursday 10 November if you are registered on Revenue’s Online Service (ROS) and you both pay and file using ROS. As it can take some time to get registered, don’t delay and register now.
Under ‘Pay and File’ you must, by either 31 October or 10 November 2017:
• File your 2016 income tax return
• Pay any balance of income tax due for 2016
• Pay preliminary tax for 2017
• Return details of capital gains for 2016
Does it only apply to the self employed?
Unfortunately, no. If you are a PAYE taxpayer, and can answer ‘yes’ to any of the following questions, you may also be required to file a tax return by 31 October:
• Do you have a source of income other than your PAYE employment income e.g. income from a part-time business, overseas pension, investment or rental income, etc?
• Are you a company director and hold directly/indirectly more than 15% of company’s ordinary share capital? This applies even if all of your income is subject to PAYE.
• Did you exercise any share options received from your employer during the tax year? If you were granted an option by your employer to buy shares at a discounted price and you exercised this option during 2016 you need to file a tax return by the above dates. Also RTSO or Relevant Tax on a Share Option is payable on the gain (market price less discounted price) 30 days after exercise.
• Did you open a foreign bank account during the tax year?
• Are you in receipt of foreign investment income e.g. income from a foreign rental property?
• Did you invest in an offshore fund or foreign life policy?
• Did you sell or transfer an asset during 2016?
What happens if you don’t file?
Failing to file on time can be extremely expensive as it can lead to the imposition of a surcharge of up to 10% of the taxpayer’s liability plus interest and penalties. There is also an increased risk of a Revenue Audit, where a tax return has not been filed.
If you don’t fall under any of the above headings,
do you need to do
It may be worthwhile to file a tax return in order to claim the benefit of the various reliefs to which you are entitled to as a means of reducing your overall income tax liability, e.g. medical and dental expenses, pension contributions etc.
4-Year Limit on Tax Repayment Claims
Individuals should also be aware that there is a 4-year time limit on claims for repayment of tax and that claims for repayment for the year ended 31December 2013 must be received by Revenue no later than 31 December 2017.
The above information should be treated as a guide only. If you would like assistance with your tax affairs, please contact Coll & Co Chartered Accountants, Barna, Galway. They can be contacted by phone: 091 592080 or by email: firstname.lastname@example.org.
Coll & Co, specialise in Personal tax & Pensions advice. Coll&Co, Chartered Accountants is regulated by their Institute ‘Chartered Accountants Ireland’ to provide Investment Advice. If you want to subscribe to Coll& Co’s free monthly newsletter, log on to www.coll.ie and fill in the details.