Guide to Completing your Income Tax Return
Revenue have issued a Guide to assist with the completion of Income Tax Returns. The main purpose of this Guide is to assist individuals who are taxed under the self-assessment system to complete their 2012 Tax Return.
Our tax consulatants in Merry Mullen can assist with and advise in relation to completion and submission of your return. We are familiar with the reliefs and allowances that are available and can develop strategies to create tax efficiencies. However in many cases there may only be a single sourse of income and you may chose to complete the return yourself.
The layout of this Guide follows the layout of the Form 11, Form 11E, Form 11S and Form 11P. For data capture purposes each entry in the Form 11, Form 11E, Form 11S and Form 11P is allocated its own Line number. For convenience this Guide uses these Line numbers for cross-reference between the Return Forms and the Guide. The Line numbers appear in bold print at the various headings throughout this Guide. e.g. [1-2] for lines 1 and 2.
- Part 1 is a panel-by-panel commentary on the completion of the 2012 Form 11, Form 11E, Form 11S and Form 11P Tax Returns,
- Part 2 incorporates information charts and examples to assist self-assessment taxpayers in the calculation of their income tax liability for Pay and File purposes.
Married Couples and Civil Partners
Married couples and civil partners are obliged to submit only one Income Tax Return showing the income of both spouses or civil partners unless they have made a formal election to have their tax affairs dealt with separately.
Self-Assessment Taxpayers - Pay and File
Self-assessment taxpayers, typically self-employed individuals and/or individuals with non-PAYE income such as rental income or investment income, are subject to the Pay and File system. If you are a self-assessment taxpayer, under Pay and File, you must pay any Income Tax due and file your 2012 Tax Return on or before 31 October 2013. This means that you should calculate your own tax liability to meet your Pay and File obligations. The notes throughout this Guide and the calculation information in Part 2 of this Guide may be of assistance to you.
Under Pay and File you must, by 31 October 2013:
- File your 2012 Income Tax Return,
- Pay any balance of income tax outstanding for 2012,
- Pay your Preliminary Income Tax for 2013.
If you file your return on or before 31 August 2013, Revenue will, if you wish, calculate your tax liability for you. This will assist you in paying the correct amount by the due date, 31 October. If you file after 31 August we cannot guarantee to provide you with a notice of assessment before 31 October and you may have to do your own calculations.
File On-Line using the Revenue On-Line Service (ROS)
The quick and easy way to file your income tax return/accounts information and pay your liability is on-line, using ROS. ROS allows you secure access to your Revenue account, immediate acknowledgement of transactions and inbuilt calculators. It provides an instant, accurate and timely calculation of your tax liability. ROS is available 24/7, 365 days a year.
Using ROS you can select three payment methods - ROS Debit Instruction, Laser Card or Online Banking. If you file and pay electronically you will qualify for an extended filing and payment date, usually an additional three weeks. Revenue guarantees that only amounts specified by you or your agent will be taken from your account.
Attachments to Returns
You should not submit any supporting documentation with your Return except where expressly asked to do so; for example where you have a genuine doubt about any item in the return you should note number 22 on the Return and enclose a covering letter setting out the point or points at issue and the basis of your doubt. Supporting documentation, including business accounts, must however, be retained for six years as it may be requested by Revenue for the purpose of an assurance check or an audit.
- You must prepare business accounts but you should not submit them with your 2012 Return.
Instead you are required to complete the "Extract from Accounts" panels of the Return.
- Do not submit lists or schedules with the Return. The totals should be entered on the Return.
- Do not enter terms such as ‘per attached’, ‘as before’, etc. You must instead enter the requested information.
Incomplete Returns will be sent back to you for proper completion and you may incur a surcharge if the corrected Return is submitted late.
Calculating your own tax liability
Remember, if you want Revenue to use your figures to calculate the tax due in time to meet your Pay and File obligations and give certainty in the amount of tax you have to pay, you must file your Return before 31 August 2013.
Better still, ROS offers you an instant calculation of your liability any time up to the Pay and File deadline on 31 October 2013 or the extended filing date if you file and pay electronically. With ROS you can e-file your Return early and select a payment date of your choosing up to the extended filing date.
Surcharge for Late Returns
You must return the completed 2012 Tax Return on or before 31 October 2013 (14 November 2013 if paying and filing using ROS) to avoid a surcharge. If your Return is late the surcharge, which is added on to your tax due, is:
- 5% of the tax due or €12,695, whichever is the lesser, where the Return is submitted after 31 October 2013 and on or before 31 December 2013,
- 10% of the tax due or €63,485, whichever is the lesser, where the
Return is submitted after 31 December 2013.
Self-assessment Returns are subject to Audit by Revenue. Tax law provides that Revenue may make any inquiries or take such actions as are considered necessary to verify the accuracy of a Return.
Tax law provides for both civil penalties and criminal sanctions for the failure to make a return, the making of a false return, facilitating the making of a false return, or claiming tax credits, allowances or reliefs which are not due. In the event of a criminal prosecution, a person convicted on indictment of an offence may be liable to a fine not exceeding €126,970 and/or to a fine of up to double the difference between the declared tax due and the tax ultimately found to be due and/or to imprisonment.
To download the Guide to Completing 2012 Pay & File Returns, please click here.
Alternatively please do contact one of our tax consultants and we would be gald to assist.