Benjamin Franklin famously once said, “in this world, nothing is certain except death and taxes”. And sure enough, it’s once again that time of year, as tax return season looms.

 

Naturally, now is a busy time for completing tax returns in Ireland. We have put together a brief guide for self-assessed tax returns due prior to 31 December, with emphasis on the impending Income Tax deadline.

 
 

INCOME TAX

 

Who?

 
You should complete a self-assessed Income Tax return if:

  • You are self-employed
  • You have profited from share options or share incentives
  • You have Non-PAYE income
  • Where your only or main source of income is:

    – rental income;

    – investment income;

    – foreign income;

    – maintenance payments;

    – fees that are exempt from PAYE

     
     

    When?

     

    The deadline for the 2021 Income Tax return is 31 October 2022 for both the Income Tax balance due for 2021 and Preliminary Tax for 2022.

     

    The ROS Extended Pay and File deadline for online returns is Wednesday 16 November 2022. The extended deadline is for taxpayers who file a 2021 Form 11 Income Tax return and make the appropriate payment through ROS. Where only one of these actions is completed through ROS, the extension does not apply.

     

    For late payments, you will be charged interest for each day (or part of a day) past the deadline.

     
     

    How?

     

  • Be organised and gather all of your business receipts, invoices, bank statements. The following is a summary of the information you will need:

    – All business and trading receipts

    – Details of all rental income

    – Details of any mortgage payments relating to a rental property

    – Employment Income

    – Other taxable income not taxed through payroll – medical insurance, company car, etc

    – Share awards and stock options remunerated during the year

    – Pension contributions paid during the year

    – Termination / Ex-gratia payments awarded

    – Deposit interest on bank and credit union accounts

    – Dividends received from shares

    – Details of any exempt income such as rent-a-room relief, etc.

    – Maintenance payments

    – Medical expenses

    – Income protection premium payments

    – Foreign income including rent and pensions

     

  • It sounds obvious, but remember to ensure you have adequate funds in your bank account to pay your liability for 2021 and preliminary tax for 2022 prior to the deadline.
     

  • Complete and return Form 11 to Revenue by 31 October 2022, or for ROS returns by 16 November 2022.

    •  

    Consider appointing an accountant if you are not comfortable completing the returns yourself.

     

    Remember:

    One way of reducing your tax bill is to make a pension contribution for 2021 prior to the deadline and avail of full tax relief. The pension contribution must be received by your pension provider prior to the deadline in order to be allowable in the Income Tax return for the previous year. Therefore, please ensure you talk to your financial advisor ahead of the deadline.

     
     

    CAPITAL ACQUISITIONS TAX

     
    Beneficiaries who received gifts or inheritances with valuation dates in the year ended 31 August 2021 must also make a return prior to 31 October. The deadline is extended to Wednesday 16 November 2022 for those who file a Capital Acquisitions Tax return and make the appropriate payment through ROS.

     

    Valuation dates vary depending on the gift or inheritance, please see www.revenue.ie for full definitions of these dates.

     
     

    LOCAL PROPERTY TAX

     
    If you owned a residential property on 01 November 2021, you are liable for LPT for 2022 on that property, even if you do not usually live in that property. You will need to ensure that you meet your LPT obligations for 2022. In order to do this you must do three things:

     

  • determine the market value of your property as at 1 November 2021
  • submit your LPT Return, including your valuation, and
  • pay or make arrangements to pay your LPT charge for 2022.

    •  

    This can be done online through myaccount.ie or the ROS system. You should have received a letter from Revenue through myAccount, Revenue Online Service (ROS) or the post regarding your LPT obligations for 2022.

     
     

    CAPITAL GAINS TAX

     

    If you dispose of an asset you must pay Capital Gains Tax (CGT) on the gains/profits on the disposal of that asset. CGT returns are due as follows:

  • For disposals between 1 January and 30 November (the initial period), you must pay CGT by 15 December of the same year.
  • For disposal from 1 December and 31 December (the later period), you must pay CGT by 31 January of the next year.

    •  
     

    RESOURCES

     

    We hope that this guide has been useful. For further and more detailed information, please visit the Revenue website itself, with particular attention to the Pay & File guide. You can also access additional information from Citizens Information.

     
     

    Susan Walsh
    Private Client Manager

     
     

    Disclaimer:

    Metis Ireland is not a tax advisor. The above is a summary and should not be used as an extensive guide to completing tax returns. You should speak to your accountant and/or Revenue for full guidance.

     
     

    Disclaimer


    Metis Ireland Financial Planning Ltd t/a Metis Ireland is regulated by the Central Bank of Ireland.


    All content provided in these blog posts is intended for information purposes only and should not be interpreted as financial advice. You should always engage the services of a fully qualified financial adviser before entering any financial contract. Metis Ireland Financial Planning Ltd t/a Metis Ireland will not be held responsible for any actions taken as a result of reading these blog posts.