Many people who live and work in Ireland are required to file an income tax return with the Revenue Commissioners each year and pay tax on the profits they made that year.
Every year, we assist thousands of people from a wide range of professions in completing their income tax returns across Ireland. That’s why we’ve compiled a list of everything you need to know about filing your taxes this year.
Who requires to File a Tax Return?
You must generally file an income tax return if you earn non-PAYE income. You can earn money in a variety of ways that require you to file a tax return, including:
- Rental revenue
- Subcontracting with RCT
- Foreign earnings
- Shares in a company or stock options
- Tax on Capital Gains (CGT)
- Directors of Proprietary Companies
What do I have to pay and how much?
The amount of tax you must pay is determined by several factors, including your total annual income, tax rate band, and any tax credits you may be eligible for.
You’ll have to make two payments by the tax return deadline: preliminary tax for 2021 and the balance of tax for 2020.
The estimated amount of tax you will have to pay for the current tax year is known as preliminary tax (2021). The preliminary tax you pay must be at least equal to one of the following:
For the year 2021, 90% of the tax is due.
For the year 2020, 100% of the tax is due.
Any tax you owe in 2020 that was not already paid in your preliminary tax the previous year is referred to as the balance of tax.
You will also have to pay a surcharge of 5% of your tax due up to €12,695 (within two months of the deadline) or 10% of your tax due up to €63,485 if you file your tax return after the deadline (after 2 months past the tax return deadline).
When Should I File My Income Tax Return?
The deadline of November 17th, 2021, is only for those who use ROS to submit ALL of the following:
- Fill out and submit Form 11 for 2020 online.
- Online payment of the balance of your 2020 income tax bill
- Preliminary tax for 2021 can be paid online.
Your return and payments are due by the 31st of October if only one of the above is completed via ROS.
Remember that your tax return, as well as your payment, must be submitted by the deadline. If you don’t, you could face a surcharge, interest, and penalties.
Ensure you’re registered up for ROS.
Revenue’s Online Service (ROS) is a web-based application that allows you to view and manage your business taxes with the Irish Revenue Commissioners. Make sure you’re signed up for ROS so you can take advantage of their deadline extension, which can be extremely helpful for busy business owners.
(As a reminder, the deadline for filing a paper Form 11 is October 31st.) The deadline for paying and filing on ROS is usually in mid-November.)
When you file via ROS, the amount of tax you must pay is automatically calculated based on the information you provide (i.e. self-assessment). Because you don’t have to wait for Revenue’s response, this is more convenient than submitting a paper Form 11.
You can hire an accountant to handle your tax returns if you don’t want to do it yourself. If you don’t have a lot of receipts or transactions, you might be able to do the return yourself. To learn more about our accounting services, contact our Accountant Team. We’d be delighted to help!
How I Know If My Tax Return Is Correct?
You must file an income tax return using self-assessment if you are required to do so. This can be a stressful experience because late filing or submitting an incorrect return can result in significant penalties. That is why, before filing your annual income tax return, we always recommend consulting a tax professional.
The TAS Consulting team has been assisting people in Ireland with their tax returns for over 15 years. We make sure that payments are current and that tax returns are filed correctly and on time.
Get a free quote from our experts and let us handle your tax filing for you this year.
WHAT’S THE NEXT STEP FOR ME TO DO?
If you have any queries, or would like specific advice, then please do not hesitate to contact us
call us on +353 (0)1 442 8230, 00353 851477625 or email email@example.com