Income Tax Returns

Filing and payment

Tax returns must be submitted by both residents and non-residents with income in Ireland, unless they’re on PAYE and have no other source of income.

The tax year in Ireland is being changed to a calendar tax year: there will be a short ‘year’ from 6th April 2001 to 31st December 2001 and thereafter the tax year will run from 1st January to 31st December.

Because most taxes in Ireland are based on self-assessment, individual taxpayers are liable to report, calculate and pay any tax due within prescribed time limits. These are as follows:

30th June is the deadline for submitting your tax return for the year ending the previous
31st December; it’s also the deadline for payment of any retirement pension premium which you wish to claim against tax for the previous year, and for payment of the remaining 10 per cent of your capital gains tax liability;
1st January is the deadline for applying to pay next year’s tax bill (i.e. the year starting the following 1st January) by direct debit;
31st December is the last date for availing of tax deductible investments (e.g. film schemes and BES);
31st March is the last date for claiming separate assessment;
30th September is the deadline for preliminary payment of tax for the year beginning 1st January last and for payment of at least 90 per cent of your capital gains tax liability for the previous tax year.

Preliminary tax is an estimate of the income tax you will be charged in the current tax year and includes PRSI and Health Contribution. To avoid interest charges you must pay 90 per cent of your liability for the current year or 100 per cent of your previous year’s tax bill or 105 per cent of your bill from the year before that (this last option is available only if you pay by direct debit), whichever is the lowest amount.

Tax forms can be obtained only from tax offices in Ireland. If you’re self-employed or a company director, you should use form 11; PAYE employees and pensioners should complete form 12 and first-time workers form 12A. Form 1 is for partnerships and Form CT1 for companies.

If you need help in completing your tax return, you can contact the central information office of the Revenue Commissioners (Tel. 01-878 0000) or your tax office (there are 13 provincial tax offices, listed in the green pages of the phone book). Note, however, that this won’t necessarily be the office in the area where you live. If you’re an employee of a company whose headquarters is in another part of the country, for example, your tax office will be the one in that area. If you wish to see an inspector, you should make an appointment, but general assistance is always available (staff will even help you complete your tax form!).

When you go to the tax office, you should take along some form of identification (if you’re a non-resident), your PRSI number, your P45 (if appropriate) and any forms you have received from the Revenue Commissioners. It isn’t necessary to take other documentation (such as rent books) unless requested to do so.

Before submitting your tax return, you should check that you’ve completed all the sections (where you have no income in a particular category, you should write ‘none’ rather than leave it blank). If you’re claiming mortgage interest relief, you should enter the loan account number of your lender and attach you mortgage interest certificate stating the amount paid during the last tax year, as well as an estimate of the interest payable in the following year.

Tax forms include customised pay slips showing your PRSI number, tax type, etc., which must be returned with the tax form, even if you’re making a nil return. You should also include copies of the following documents:

form P60;
form P45 if you have ceased employment;
details of any benefit-in-kind (especially a company car);
if you’re receiving any social welfare income, a statement from the Department of Social, Community and Family Affairs confirming the kind of income, the date payment began and the weekly amount;
details of any rent paid (which should be entered on form ‘Rent 1’);
if you’re receiving rental income, a detailed account of gross rent and expenses such as furniture on which you may be entitled to a wear and tear allowance;
details of any acquisitions and disposals of assets during the tax year which may be liable for capital gains tax;
documentation relating to government stocks, rents and other income;
the relevant claim form if you’re claiming a dependent relative allowance for the first time;
details of any allowable medical and dental expenses, which should be entered on forms ‘Med 1’ and ‘Med 2’ respectively;
confirmation of any private health insurance subscriptions paid during the previous tax year;
form RICT for any BES or film scheme investments;
receipts for private tuition if appropriate;
certificates of private pension contributions.

If you’re a company or a sole trader, you’ll also need to submit:

a trading account showing details of sales and profit/loss for the tax year;
a profit and loss account;
a capital account;
a balance sheet showing business assets and liabilities.

N. B. Finally, make sure that you sign the form!

There are three ways of paying your income tax in Ireland:

you can post payment to the Collector-General’s Office using the pre-paid envelope provided with your tax form;
you can pay it in person at the Collector-General’s Office (Apollo House, Tara Street, Dublin 2 or Sarsfield House, Francis Street, Limerick); or
you can pay by bank Giro. The last method is obligatory for payments of preliminary tax, VAT and employer’s PAYE/PRSI.

Unless your tax affairs are simple, it’s prudent to employ an accountant or tax consultant to complete your tax return and ensure that you’re correctly assessed.