Sometimes life gets in the way of your plans. You’ve missed the tax deadline - so what happens now?
Every year thousands of taxpayers miss the extended deadline for income tax returns, so you are certainly not alone. We are here to help you figure out the next steps, if you haven’t filed your 2019 tax return yet.
1. Act fast and file your return
Most importantly - get the return filed!
As the return is now late you will have financial penalties but these will increase the longer you leave it to file your tax return.
The penalties you need to pay will depend on what your tax liability is. Firstly, if you submit your income tax return at any point beyond the filing deadline you will be issued with a surcharge of 5% of the tax liability for the year (before any payments). If the return is more than 2 months late this surcharge is increased to 10%.
Take for example a self-employed person earning €70,000 a year and paying tax of roughly €23,500. If they file their return before 31 December 2020 then they will face a surcharge of roughly €1,200. If they file their return after 31 December 2020 then this penalty will double to close to €2,400.
As well as the surcharges, Revenue can also apply interest at a daily rate of 0.0219% per day. Unfortunately, the interest will be backdated to the 31 October deadline rather than the online extended deadline of 10 December.
2. If you have a reasonable excuse for missing the deadline, apply for charges to be waived
Revenue may waive charges for anyone who offers a "reasonable" excuse for being late.
For example, if you suffered a family bereavement or if you were very ill and have a note from a doctor outlining this.
Also, Revenue has advised they will take a pragmatic approach to individual cases as regards the application of the surcharge for late filing where there is a genuine difficulty in submitting income tax returns by the deadline due to COVID-19. Read more here
In general, however, the Revenue are quite strict when it comes to how they apply this concession and what they will accept as a reasonable excuse.
3. Get organised for next year!
It is never too early to start getting the paperwork ready for your 2020 return. Once the New Year celebrations are over you can file your return.
If you start get organised for your next return now you can file early next year and save yourself the penalties and stress!
Filing your tax return on time can reduce the chances that you will be selected for the dreaded Revenue Audit.
We Can Help
Over the last few weeks TaxAssist Accountants have been working with thousands of individuals across Ireland on their tax returns. If you need assistance filing your Income Tax Return please do not hesitate to contact us.
Date published 18 Nov 2019 | Last updated 10 Dec 2020This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.