When is it Necessary to Submit a Tax Return (Form 11)?
You should consider filing a tax return (Form 11) if you fall into any of the following categories for the 2022 Tax Year:
- If you served as a proprietary director during 2023,
- If you were a registered sole trader, either for the entire year or a portion of 2022.
- If you acted as a landlord and received Rental Income in 2013.
- If you incurred a Capital Gain during that specific tax year.
- If you had additional sources of non-PAYE Income that require declaration. These sources may encompass Dividend Income, Foreign Earnings, or Deposit Interest. If your non-PAYE sourced income is below €3,174 per annum, you have the option to file a Form 12, which is a condensed version of the Form 11.
Can I Avail of Tax Credits and Reliefs?
In addition to disclosing your income in your tax return, you are also eligible to claim various Tax credits and relief for specific expenditures. These may include Medical Expenses, Tuition fees, Home Carers Credit, and Pension payments. For a comprehensive list of available credits and reliefs, please visit the Revenue website at
https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/tax-relief-charts/index.aspx
I Haven't Filed My Return - What Should I Do?
If you have not yet filed your tax return or are uncertain about your obligations, you can reach out to Borgo for guidance. We are more than willing to advise you on the necessary steps and the information needed to complete your return. We will provide you with a checklist to ensure that all your requirements are met when filing your tax return. Following this, Icon Accounting can prepare a tax computation for the 2022 Tax Year for your review and approval.
I Have Now Filed My Return - What's the Next Step?
Once your tax return is submitted, you will receive a Notice of Assessment from Revenue. This notice will indicate whether you have a tax liability or are entitled to a refund based on the information provided. In the event of a liability, you are required to settle it by October 31st, 2023. If you are due a refund, it will be deposited into your nominated bank account within a few weeks.
What Happens if I Fail to File My Return?
Failing to meet the October 31st deadline for filing your tax return may result in penalties for late submission:
- A penalty of 5% of the tax due, up to a maximum of €12,695, if filed within 2 months of the filing date.
- A penalty of 10% of the tax due, up to a maximum of €63,485, if filed more than 2 months after the filing date.
- In certain cases, persistent failure to file can lead to prosecution by the Revenue Commissioners.
It's crucial to note that even if you have no additional tax liability and have paid your taxes through the PAYE system, these penalties will apply to your overall tax liability, which includes the taxes paid through the PAYE system.
Please Note: If you utilize the online pay and file deadline, Revenue will grant an extension up to November 15th, 2023. To take advantage of this extension, you must file your tax return online and make any outstanding payments online.
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