The Association of Chartered Certified Accountants (ACCA) has published a timely reminder to self-employed professionals across Ireland regarding their local property tax (LPT) payments.
The ACCA warns that self-employed workers that submit their annual tax return without paying the LPT they owe could be hit with financial penalties worth up to 10% of their total tax liabilities.
Issues regarding the payment – or non-payment – of LPT could result in payment disparities of up to €2,000 per person; all of which affects Revenue’s tax take.
Self-employed individuals, as well as freelancers, contractors, property landlords and anyone else that receives additional income that is not subject to PAYE are required to file tax returns annually.
Self-assessed taxpayers have until 31st October to pay the taxes they owe from their latest tax return, or risk late filing penalties and interest.
For example, an LPT mis-charge worth €215 could result in a fine worth €2,000. However, Aidan Clifford, technical director of the ACCA, believes there are many self-employed workers throughout Ireland that are unaware of the costly consequences of failing to pay the correct amount of LPT.
“Self-employed people need to ensure they have their tax affairs in order, particularly with LPT,” said Clifford.
“As it stands, even if self-employed workers move to immediately resolve the unpaid LPT, the penalty applied to the tax return may only be reduced, meaning the taxpayer in that circumstances can still end up paying three times the value of the original LPT charge.”
The staff at the Revenue Commissioners are not tasked to advise self-employed professionals on how to organise their tax affairs.
If you want to ensure you are paying the correct amount of LPT, you should consult a professional.
Your local TaxAssist Accountants branch can work with you to file self-assessed tax returns annually on your behalf, giving you peace of mind and allowing you to focus on doing what you do best – running your business.
For a free initial consultation on your LPT payments or to analyse your latest tax return to see if any tax savings can be made, call us today on ::Telephone:: or drop us a line using our online enquiry form.