5 Things you need to prepare for your Form 11 Income Tax Return
What do I need to do to prepare my income tax return in Ireland?
5 Things you need to prepare for your Form 11 Income Tax Return:
1. Do it on time!
It’s ok: the deadline for filing your income tax return is not until the 31st of October. And if you file online via ROS, you will get that date extended until the 16th of November 2022. But whatever you do, don’t be late filing your tax return. Late filing will cost you an extra 10% in a surcharge. You still have lots of time to get ready. My advice: Start working on it now. Get in touch with a tax professional to help you file your return (linkedin.com/in/james-ivory)
2. Make sure you can access ROS
You’ve done all the hard work. Your accounts are in order. You may simply be waiting for the deadline to roll around because you have your tax calculated and your money set aside. Great! But if you can’t access ROS because your digital certificate is out of date, and you haven’t left yourself enough wiggle room, you could find yourself filing late with a penalty. Ouch!
My Advice: Check your access, make sure you remember your password, and above all make sure that your ROS Digital certificate is in date and will be on the day you are going to file. (Renewing-your-ROS-digital-certificate)
3. Is your property tax up to date and in order?
You may not agree with property tax, but it is a required filing. And now if your local property tax (or LPT) is not filed and paid before you submit your Income Tax form 11 filing, you will be hit with a 10% surcharge! That’s a whole 10% more tax than you need to pay. You may even have filed your LPT and set the direct debit to leave your account, but if for some reason the payment failed, you are deemed to be out of compliance with LPT, and you’ll suffer 10% penalty on your income tax accordingly.
My Advice: Make sure your LPT was filed, is up to date and the payment has been successful, before you attempt to file your Form 11.
4. Claim your credits
Many people fail to claim the full extent of credits available to them. Check the list of credits available to see if any of them are appropriate for you. But don’t claim what’s not due to you. If you are not familiar with the terms of the credits, Revenue.ie has a good search function and practically every topic is covered in easy to understand terms. Or you can ask a qualified tax consultant too. (Revenue.ie Credits Search)
Two credits that I often see missed or disregarded are Medical Expenses and Pension contribution. Firstly medical expenses that have not been refunded through your insurance can be used to reduce your tax bill. You will get a credit for 20% of the value of your qualifying medical expenses that were not refunded.
Secondly, any payment you make to your private pension fund in the year is 100% tax deductible (subject to limitations). This will reduce your tax and PRSI contributions.
My Advice: Check the credits you are claiming and see if anything else might fit your particular circumstances, start to pull together your medical expenses for last year, and think about making an additional payment to your retirement fund to reduce your tax bill. Speak to a qualified tax professional for advice. (Email James Ivory)
5. Speak to a qualified tax agent
Filing your Income Tax return is not easy. Have you put the right amounts in the right boxes, chosen the right assessment type (joint/separate/single), made sure you have the right credits and ticked the appropriate boxes? Do I have a capital allowance or a balancing charge? Am I resident, non-resident or domiciled in Ireland? Is my income for USC purposes the same as my income for Tax and PRSI purposes? Getting it right can be a minefield, confusing and overwhelming.
My Advice: If you do not have experience of completing your own return, or you have a question that you are finding it difficult to resolve, call a professional tax advisor to help you.
I’m happy to offer specific advice on any of these topics or any other element of your tax return and have experience dealing with individuals and small businesses. Call James Ivory & Co Chartered Accountants and we will be happy to advise you. You can benefit from our years of experience with a free first call and consultation on 051 347 771 or 083 8632149.
James Ivory & Co Chartered Accountants is licensed to practice in Ireland and the UK by Chartered Accountants Ireland.