Filing your Annual Tax Return

With the 31st October deadline fast approaching; it is important for all Contractors to examine whether they need to file a tax return in respect of the Tax Year 2013.

When do I need to file a tax return Form 11?

• If you were a proprietary director in 2013, i.e. if you were a Director in an Umbrella company or had your own Personal Limited Company
• If you were a registered sole trader for all or part of 2013
• If you were a landlord and in receipt of Rental Income in 2013
• If you made a Capital Gain in the relevant tax year
• If you had extra sources of non- PAYE Income that you need to declare - These may include Dividend Income, Foreign Earnings, Deposit Interest
• If your non- PAYE sourced income is less than €3174 per annum you may file a Form 12; A form 12 is an abbreviated version of the FORM 11

Can I claim Reliefs & Tax Credits? As well as declaring your income in your return, you may also claim Tax credits and relief for various items. These include Medical Expenses, Tuition fees, Home Carers Credit Pension payments.

For a full list of credits and reliefs can be seen on Revenue website; http://www.revenue.ie/en/tax/it/leaflets/it1.html 

I haven’t filed my return - What should I do? If you haven’t filed your tax return yet or are unsure of your obligations to file the return, you can contact Icon Accounting. We will happily advise you on the next steps and what information is required in order to file the return. A checklist will be sent to ensure we cover all your requirements on the tax return. Icon Accounting can then send you a tax computation relating to 2013 for your approval.

I have now filed my return - What happens next? Once you file your return, you will receive a Notice of Assessment from Revenue. This will indicate if you have a liability or refund, depending on the information provided. Should you have a liability you are obliged to pay it by the 31st October 2014. If you are in receipt of a refund, this will be sent to your nominated bank account, within a couple of weeks.

What happens if I don’t file my return? If you fail to file your tax return by October 31st* you will be liable for Penalties relating to late filing:

• 5% of the tax up to a maximum of €12,695 if filed within 2 months of filing date • 10% of the tax up to a maximum of €63,485 if filed after 2 months of filing date • In some cases continuing failure to fine can lead to Prosecution by the Revenue Commissioners

• It’s important to note that even if you have no extra liability and have paid your taxes through the PAYE system the penalties will apply to you overall tax liability to include the taxes paid through PAYE system. This is important for Contractors who are also Directors of a limited company including Umbrella Company Directors.

*if you avail of the online pay and file deadline, Revenue will give you an extension up to the 13th November 2014. To avail of this you must file your tax return online and make payment online of any outstanding liabilities.

For further information you can contact the Icon Accounting Tax Department on 01-8077106

Gerard Kiernan

Managing Director - Icon Accounting