If you have miss the deadline of 17 November for filing your 2018 tax return you can expect to receive an automatic late filing surcharge and you will also be charged interest on the outstanding tax bill. The two charges are quite different and not in place of one another.
Late filing surcharges
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%.
For example a proprietary Director files their income tax return 3 months late. Their tax liability for the year was €15,000 which was paid through the PAYE system. A surcharge of €1,500 would be payable even though there is no tax liability outstanding.
Late payment interest
Late payment interest is charged to reflect the fact that Revenue effectively gave interest-free credit whilst the tax payment was outstanding.
The current rate of interest charged is .0219% of your liability per day.
Disclaimer: Advice shared in this blog is intended to inform rather than advise. 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 forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.