Income tax filing deadline approaches

31 October 2011 is the income tax pay and file deadline for 2010 tax returns. This can be extended to 15 November 2011 provided you pay and file online using ROS. It is the deadline for:

  • 2010 tax returns (form 11)
  • Payment of the balance of tax due for 2010, ie 2010 tax liability less any preliminary tax paid in 2010.
  • Payment of preliminary tax in respect of 2011 tax year

Your accountant can file online on your behalf. It is simple to set-up. The accountant notifies Revenue and submits a form signed by you. It normally takes just 2/3 days for the accountant to be granted access to your ROS account.

I didn’t make any money 2010, so does it really matter if I miss the deadline?

Firstly, the deadline applies regardless of whether you made a profit or a loss. Secondly, Revenue’s idea of making money and your idea of making money may be different. For example, certain expenditure is not allowed when calculating profits for tax purposes. Thirdly, if you do have a tax liability and miss the return deadline you will incur a 5% surcharge (10% if you’re more than 2 months late). Fourthly, poor tax compliance history increasing your risk of being selected for Revenue audit. And, lastly you can be fined, on conviction, €3,000 for failing to file a return.

If you do have a loss you may be able to off-set it against other income in 2010.

What do I need to do?
  1. Gather and collate all your sales and purchases invoices for 2010
  2. Make sure you have all your bank statements and payments details for the year
  3. Gather any medical expenses receipts for 2010 (only those that cannot be reimbursed by VHI)
  4. Gather your bin charges receipts for 2009
  5. Don’t worry about P60s and income levy certificates – this information can be accessed on line

If you are going to prepare and file the return yourself you will need to familiarise yourself with the rules for calculating profits and tax, such as allowable and disallowable expenditure, availability of tax credits and reliefs. You can find information on this on the Revenue website.

Obviously, I would advise against this. It could save you a lot of time, money and hassle engaging a professional accountant or tax consultant to do it for you.

There is a perception that accountants are expensive and that engaging one is going to lead to a whole range of hidden costs. This may be the case if you are being charged at an hourly or daily rate. We agree a fixed fee before commencing any work. That is the fee you will pay – no extra charges for phone calls, letters, emails, printing or other outlay.

Give us a call or send us an email – we’d be happy to answer any queries you have.

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