Every year in Ireland – Landlords, Subcontractors, Freelancers, Small Business Owners and Self-Employed individuals must pay tax on the profits made during the year. In order to pay tax, you must complete an income tax return that is to be submitted to the Revenue Commissioners. Even if you make a loss, you are still obliged to submit an income tax return.
At Tax Return Plus, we understand how difficult it can be to know the circumstances under which the law stipulates that you need to file your income tax for the year. To help you better understand, we’ve created this handy guide that covers who is required to file an income tax return, what you will need to complete it, how to file and the tax return deadline in Ireland.
Who Is Required to File an Income Tax Return in Ireland?
All non-PAYE workers are required to file an income tax return. This includes individuals operating in a variety of professions including:
• Self-Employed Individual
• Irish Landlords
• Non-Resident Landlords
• Individuals with investment income
• Individuals with Foreign income (including pensions)
• Individuals profiting from share options or share incentives
• Construction Subcontractors
• Individuals with approval of SARP (Special Assignee Relief Programme)
• Proprietary Directors
What is the Tax Return Deadline?
The tax deadline in Ireland is 31st October. Be sure to submit all self–assessment income tax documents by this date. The final deadline for filing your 2018 income tax return, paying the balance of your 2018 tax liability and preliminary tax for 2019 is 31st October 2019.
Are there penalties for late payments?
Be sure you do not miss the October 31st income tax return deadline, or you might end up paying more than you originally needed to. Interest may be charged for each day (or part of day) you go over. Paying interest on late fees will quickly add up and cause more financial complications than you need or want.
A Surcharge is also payable if you file your tax return late. If you file your tax return within two months of the deadline, you will be charged 5% of the tax liability up to a maximum of €12,695. If you file your tax return over two months of the deadline, you will be charged 10% of the tax liability up to a maximum of €63,485.
What do you need to pay?
By the 31st of October 2019 you will be responsible for filing your income tax return for the previous tax year (2018 tax year) and pay any tax due. You must file your tax return if you earn non–PAYE sources of income, profit from share incentives or if you are approved for SARP (Special Assignee Relief Programme).
You’ll also need to pay your preliminary tax for the 2019 tax year. Preliminary tax is 100% of the tax due for the preceding year (2018) or 90% of the tax due for that year (2019).
What relevant documents are required for income tax returns?
You must continuously keep track and file your business receipts throughout the year. Receipts serve as evidence of your business expenses – without them you cannot make a claim against the expense. Keeping track of receipts will help eliminate time and pressure when the tax deadline approaches.
In addition to managing your business expense receipts, you’ll also need to keep track of all your sales invoices and bank statements for the year. This will help streamline the process when it’s time to file your income tax return.
All records and linking documents must be kept for a period of six years and will be requested for examination in the event of a Revenue audit.
How do you file an income tax return?
To ensure you don’t miss the deadline or file your income tax return incorrectly, contact our expert team here at Tax Return Plus. With over 20 years’ experience in all things tax return related, we are standing by to help you with your income tax returns when you need it. A standard tax return with us starts from just €185. Get a quick quote now and our expert team will contact you within 1 working day with your quote.