When the end of the tax year arrives, knowing exactly what to expect will make things a little easier. Here’s everything you need to know about the Form 11 tax return.
For Whom Is Form 11 Intended?
Anyone who Revenue considers a “chargeable person” must fill out Form 11. A chargeable person, according to their definition, is someone who has a gross non-PAYE income of more than €30,000 or who earns an additional €5,000 or more in a year on top of their PAYE earnings.
You must declare this income to Revenue and self-assess your tax liability each year if you fall into one of these categories. This is where Form 11 enters the picture.
Additional income examples:
- Rental income or income from Airbnb
- Foreign earnings
- Earnings from side jobs such as freelance projects, taxi driving, or delivery work
- Dividends provide income.
- Interest on deposits
If your extra income is less than €5,000 per year, you are not considered a chargeable person and must instead complete Form 12.
Form 11 is for the directors of a corporation.
If you are a company director and own more than 15% of the company’s stock, you are considered a proprietary director and must file a Form 11 each year. Because all proprietary directors are chargeable persons, this is the case. When Joint Assessment is used, your spouse or civil partner is subject to the self-assessment requirements as well.
How to Complete Form 11
Form 11 can be filled out and submitted online, or it can be printed and mailed. You can use whichever method is most convenient for you, though there are a few advantages to filling out the form online. For example, the standard deadline for Form 11 is October 31st each year, but this is extended if you complete the form online. Every year, the exact date varies, but it usually falls in the second week of November. Because you fill out Form 11 online through your Revenue account, the form will be pre-populated with some of the information Revenue already has on file. This makes the process a little easier and faster. You’ll need the following information to fill out Form 11.
- Login information for Revenue (if you are completing Form 11 online)
- Name, contact information, and marital status are all basic personal information.
- Your Personal Public Safety Number (PPSN) (Personal Public Service Number)
- The nature of your additional income is described in detail (e.g. allowable expenses and total profit)
- Details from your Job Description Summary (.e.g. Your gross pay and tax paid)
- Your Certificate of Tax Credit
Earnings from a rental.
If you earn extra money from a rental property, it’s critical to understand what expenses you’re allowed to deduct before filling out Form 11. The information you provide on this form will determine how much tax you will pay, so it’s easy to get overcharged if you don’t know what you’re doing. On the other hand, if you claim expenses that you are not entitled to, you may find yourself in hot water with Revenue.
The first field for your rental income is ‘Repairs.’ This may lead you to believe that any repairs made to the rental property are covered, but this is not the case. Repairs made prior to the first tenancy cannot be claimed, even if you bought the property with the intention of renting it out.
This is where Form 11 gets a little tricky, because it doesn’t provide many guidelines and instead assumes you already know something about taxes. It’s always best to seek advice from
A tax professional if you’re unsure. They can ensure that it is not only correctly filled out, but also that you save money on your bill wherever possible.
What kind of tax will I have to pay?
The following is how your income tax liability is calculated:
1.You add up all of your taxable income (including PAYE income and any additional income as listed above)
2.Your tax liability is calculated using the current standard rates of tax (for example, in 2021, a single person would be charged 20% for total earnings up to €35,000 and 40% for the remainder).
- Your total tax credits (e.g., a single person tax credit of €1,650 and a PAYE tax credit of €1,650) are then deducted.
- The charges for USC and PRSI are calculated and added to your total.
- Any taxes you’ve already paid (including through the PAYE system) will be deducted from the final charge.
After you’ve submitted your tax return and Form 11, the Revenue Commissioners will send you a notice of assessment (NOA) detailing how much tax you owe for the year. This document will also show you how the liability (or refund) was calculated, as well as a breakdown of your income and tax credits.
If you submitted your return online, you should receive it within a few days, and if you sent it in by mail, you should receive it a little later. It will also take longer if you submit your tax return close to the deadline.
How to Make a Payment
You can pay your tax bill using a ROS debit instruction, a debit or credit card, and your account on the Revenue website. If you sent your forms by mail and don’t have an online account, you can also send a check or bank draught to Revenue Commissioners. Include the amount of taxes to be paid as well as your PPS number so they know what the money is for.
If you owe a tax refund, Revenue will send you a check or direct deposit the money into your bank account. Unless your claim is selected for further investigation, refunds are usually issued within 5 working days.
Taxes aren’t always simple, so if you’re having trouble filling out Form 11, it’s a good idea to seek professional assistance. This will give you confidence that everything has been completed correctly and will help you avoid any unpleasant surprises.
Our team of chartered accountants can help you with your tax return by double-checking your tax credits, relief, and income to ensure that you are not only compliant but also saving as much money as possible. If you’d like to learn more, we’d be happy to assist you. Send us a message through our contact form below or directly call us.
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