2015 TAX RETURNS ARE DUE NOW
IF you are self-employed, a company director or in receipt of substantial rents and deposit interest you must then file a tax return for 2015 by the end of October 2016
There is a 10 per cent surcharge for a late filing so one has to pay additional tax for being late. However, if the return is filed on ROS (the Revenue Online Service) then there is no surcharge provided the return is filed and the tax paid by November 10, 2016.
To avoid an interest charge for late payment of tax, one is required to pay preliminary tax for the 2016 tax year on October 31 this year, of an amount which is adequate given all the circumstances. An adequate payment on account for 2016 is either 100 per cent of the final liability for 2015 or alternately at least 90 per cent of the final liability for 2016. The latter has to be a shot in the dark as the 2016 year is not over and it is impossible to accurately know what the final liability will be.
It is useful to check if you should be within the range of persons to whom the preliminary tax and self-assessment rules apply but are not making returns; if so, then you need to correct the position right away. If the net trade profit, rent or deposit interest is less than €5,000 for a year then the self-assessment rules do not apply to you.
Conversely, if you are not in the self-assessment regime as the total net income from trading, from rents and from deposit interest is more than €5,000 then you should be in the self-assessment category.
A married couple will normally file a single return for both incomes. Even if one spouse is not liable under self-assessment then a return for both must be made by October 31, 2016 for 2015 year to avoid a surcharge. This assumes that the couple want a joint assessment. As an alternative then seek separate assessment. Usually joint assessment for a couple will produce the lowest overall liability.
Apart from income tax, the return also requires them to report all Capital Gains Tax events in 2015. This includes sales and purchases of property and shares. If it is a sale, you need to calculate the gain; if a purchase then the amount spent is all that needs to be disclosed.
If one is not in the self-employed sector with the revenue it will be necessary to register with them using Form TC1. At this stage, everybody in the state seems to have a PPS number but if you have not, then go to the local Social Welfare Office to sort it out and bring along your birth certificate and some ID (e.g. passport or driving licence).
Where one feels unable to attend to a tax return, then go to an accountant or tax agent that you know and give them as much documents as you can find. Remember that if in a trading situation, you are legally required to keep records. Don’t expect the accountant to be able to deal with it right away as this is the busiest time of the year in the tax compliance sector but hopefully it can be sorted by the return filing date of October 31, 2016 or on ROS by November 10, 2016.