HANDY POINTERS FOR 2017 TAX RETURN
THE DEADLINE
The deadline for paper-based tax returns is October 31, 2018 but if you’re filing your return online, the deadline is November 14. You must be registered with ROS (Revenue Online Service) to be able to file your return online. It could take a week or two to get registered with ROS, so if you haven’t done so already and are planning to file your return online, register as soon as possible.
EXEMPT INCOME & TAX RETURNS
Even if you earned income in 2017 which is exempt from tax, you may still need to file a tax return for that income and declare the taxexempt income in your return. This, for example, is the case with the rent-a-room relief scheme. Never assume that any income you earn is taxfree — always check with Revenue if income earned is taxable and if you must file a return for it. Income earned from taking a foreign student into your home can be tax-free — as long as you qualify for rent-a-room relief. You must still file a return to declare that tax-free income though.
PATERNITY & MATERNITY PAY
Maternity and paternity benefit are liable to income tax — but not to PRSI or the Universal Social Charge. So should you be self-employed, remember to declare any maternity or paternity benefit you received in 2017 in your tax return and to pay the tax due on that benefit. PAYE workers who get paternity or maternity pay do not need to file a tax return as Revenue should have already adjusted their tax credits and bands to ensure that tax was paid on the benefit.
TAX RETURN FORMS FOR HOUSE SALE
Self-employed individuals who sold a property in 2017 must declare that sale in the Capital Gains Tax (CGT) panel of their tax return form (Form 11). PAYE workers however can file their CGT return on the form CG1.
TAX RETURN FORMS FOR AIRBNB
As this year’s tax return deadline is for the 2017 tax year, it is income earned as an Airbnb host in 2017 which must be declared by the end of this month (or by November 14 — if filing the return online). “If you’re a PAYE worker and have Airbnb income in 2017 which you didn’t sort out through the PAYE system by having your tax credits and rate band adjusted, then you have until 14 November this year to file a Form 12 and pay over the tax due on the income,” said Norah Collender of Chartered Accountants Ireland. “The form is complex so don’t put off completing it until the day of the deadline.”
Self-employed people can use the Form 11 to declare any income earned through Airbnb. “If you are frequently getting an income from Airbnb, you need to complete the section dealing with trading income,” said Collender. “If you only got a one-off or infrequent payment from Airbnb, you should complete the section of the return dealing with fees and commission earned from sources of income other than employments or directorships.”
Should you have earned money as an Airbnb host prior to 2017, and never declared or paid tax on this income, contact Revenue soon to settle your tax bill for that income. You are likely to face interest and penalties for late payment of tax but failure to settle your tax bill now could see you face much tougher tax penalties in the future.