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Everything you need to know about filing a tax return in Ireland
As the tax return deadline approaches it is important to get organised and file on time! Here are some Q&A to help you understand the process.
At TaxAssist Accountants we help thousands of self-employed individuals in Ireland to file their self-assessment tax returns.
To help people gain a better understanding of the tax return process in Ireland here are the answers to some of the most asked questions we get each year:
Q. Who needs to file a tax return?
If you make any money outside of your normal PAYE income from your job then you need to file a self-assessment tax return each year.
Here are the most common reasons you may need to file a tax return:
- You are self-employed, work freelance or as a contractor
- You are a landlord or make money using Airbnb
- You are the director of a company
- You own shares
- You have sold a personal asset or sold all or part of your business
- You have inherited money
- You make some extra cash doing nixers
Q. When do I need to file my Tax Return?
The pay & file deadline, for those that file through ROS, is Wednesday 15 November 2023.
On or before this date you must file your 2022 self-assessment income tax return, pay your income tax balance for 2022 and pay your preliminary tax for 2023.
If you do not use ROS the deadline is 31 October 2023.
Get Organised
There is nothing to stop you filing early and being organised. Even though the deadline isn’t until November you can file your tax return for the previous year from 01 January of the new year.
New businesses
The way the self-assessment system works is that you do not need to file your tax return and pay your tax until October of the year after you start trading. So, if you started trading in 2023 you make your first return in 2024.
Q. What is a Form 11?
The form you fill in to file a self-assessment tax return in Ireland is called a Form 11. People use the terms tax return and Form 11 interchangeably.
Q. How do I file a tax return?
It is your obligation to register with Revenue and file a tax return.
You can file a Form 11 tax return yourself with Revenue online using Revenue Online Services (ROS)
On your tax return you will need to report your total income, including income from self-employment, rental income, investments, and other sources. You will also need to declare any deductions or allowances that apply to your situation.
Based on the information provided on your Form 11, ROS will calculate your tax liability. You will need to pay any outstanding tax by the deadline.
Have an accountant file your tax return
You can also choose to have an accountant file your tax return and many people do decide this for various reasons. Some of the reasons people decide to use an accountant for their tax return include:
- Save time
- Peace of mind that everything is done correctly
- Have an experienced person deal with Revenue if needed
- An experienced accountant should be able to help reduce your tax liability through deductions you may be entitled to
At TaxAssist Accountants we work with thousands of individuals across Ireland on their tax returns. By giving you a fixed, competitive price, we can take the worry away when it comes to self-assessment tax returns; allowing you to concentrate on running your business. If you need assistance filing your income tax return you can call us on 1800 98 76 09 or submit an enquiry online to book your free initial consultation.
Q. What expenses can I claim in my tax return?
An allowable expense is an expense that is directly related to the running of your business. For example:
- Goods that you buy for resale
- Employees' payment
- Rent and bills for your business premises
- Running costs for vehicles or machines, and lease payments for vehicles or machines, that you use in your business
- Interest payments for money you borrowed to finance your business
- Expenses you had before your business started trading such as the cost of preparing business plans
- Accountancy fees
What expenses cannot be claimed in your tax return:
- Personal mileage expenses
- Food expenses – in the case of an employee on a business trip whereby they are forced to eat out or incur food costs that would not be normal, an allowance may be given to cover these costs
- Clothing costs (except protective clothing)
- Accommodation – the cost of accommodation is not allowable. Hotel accommodation incurred on a business trip (where there is no personal motive in the trip) is an allowable deduction
- Client entertainment
- Capital expenditure – e.g. purchase of equipment. You may be able to claim capital allowances on this expenditure
Expenses that are for both business and private use:
If you spend money on something that is for both business and private use, you can claim a deduction for part of the expense. This would include things like phone bills, motor expenses and rent. You need to work out what percentage of the expenditure was for business purposes and claim a deduction for that percentage only.
Q. Are there ways to save money on my tax return?
Tax Credits reduce the amount of tax that you pay. The tax credits you are entitled to are dependent upon your personal circumstances.
In many cases people may not be aware of the additional tax reliefs that they could be claiming and because of this are paying higher tax bills than they should.
Common tax credits that are often forgotten about are the Home Carer Tax Credit, the Year of Marriage Tax Credit and the new Rent Tax Credit. Many people also often don’t claim working from home expenses. In the past it may not have seemed worth it to claim working from home expenses but with the rise in the cost of electricity and gas it may now be a good time to start.
Another great way to save money on your tax bill is to pay into a pension. The government offers generous tax relief at your highest tax rate.
Read more about saving money on your tax return here
Q. How do I pay my tax bill?
You can pay the tax you owe online through ROS with a debit or credit card.
Q. Do I need to pay preliminary tax?
In order to fulfil your preliminary tax obligations for 2023, a payment should be made along with the filing of your 2022 tax return.
Preliminary tax is an estimate of the tax you will owe on next year’s tax return.
You have three options when deciding what level of preliminary tax you should pay:
- Based upon 100% of your 2022 tax charge.
- Based upon 90% of your 2023 tax charge (this will need to be an estimate at the time of filing the return).
- 105% of your final tax charge for the pre-preceding tax year (2021). This option is only available where preliminary tax is paid by monthly direct debit.
Q. What do I do if I cannot pay my tax bill?
Where you can’t pay your tax bill you should make contact with Revenue as soon as possible.
Revenue may be able to offer you an option to pay your tax bill in instalments, this is known as a Phased Payment Arrangement (PPA).
If no effort is made to pay the tax bill Revenue will take enforcement action.
Q. What happens if I file my tax return late?
If you miss the tax return deadline there are a number of consequences and charges including:
- You will be charged interest at a rate of 0.0219% per day and each day that the return remains outstanding.
- There is a 5% late filing surcharge, calculated based on your 2022 income tax liability, if you file within two months of the 31 October deadline. This then doubles to 10% if you do not file within 2 months of the deadline i.e. by 31 December.
- Filing late can increase the likelihood that you will be chosen to be audited by Revenue
- You could lose your entitlement to government grants and subsidies as businesses must be entitled to a tax clearance certificate to qualify for these schemes.
If you have missed the deadline, it is important to act fast and file your return as quickly as possible.
If you have a "reasonable excuse” for being late, like a family bereavement, Revenue may waive the charges. They are very strict on this, and you should contact Revenue if you believe you have a “reasonable excuse” for filing your tax return late.
Tax Return Knowledge Hub
We have a dedicated Tax Return Knowledge Hub on our website with loads of articles and Q&A all about tax returns. Check it out here
We can help with your tax return
If you need assistance filing your income tax return in Ireland you can call us on 1800 98 76 09 or submit an enquiry online to book your free initial consultation. Read more about our Tax Return Services here.
Book your FREE Initial Consultation
Date published 28 Sep 2023 | Last updated 28 Sep 2023
This 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.Choose the right accounting firm for you
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