Your Essential Guide to Filing a Tax Return in Ireland

Guide to Filing a Tax Return in Ireland
Here’s what we cover:

As the deadline for tax returns inches closer, it’s vital to get organised and file on time.

Here, we delve into the key aspects of the tax return process in Ireland, answering common questions and providing tips for a hassle-free filing experience.

Who Should File a Tax Return?

If you have earnings outside of your regular PAYE income, you’re required to file a self-assessment tax return annually. Here are some scenarios where you might need to file a tax return:

Key Deadlines to Remember

For those utilising the Revenue Online Services (ROS), the ‘pay & file’ deadline is 15 November 2023. By this date, you must file your 2022 self-assessment income tax return, settle your 2022 income tax, and pay your preliminary tax for 2023. If you’re not using ROS, the deadline is 31 October 2023.

Also Read: Can I claim tax relief on student accommodation Ireland

Getting Organised Early

You can start filing your tax return for the previous year from 01 January of the new year, well before the November deadline.

New Business? Here’s What You Should Know

For newcomers in the business realm, the self-assessment system allows you to file your tax return and pay your tax in October of the year following the start of your trading. So, if you commenced trading in 2023, your first return is due in 2024.

Understanding Form 11

Form 11 is the document you’ll fill out for your self-assessment tax return in Ireland. The terms ‘tax return’ and ‘Form 11’ are used interchangeably.

How To File

Your responsibility is to register with Revenue and file a tax return. Filing a Form 11 tax return can be done online via Revenue Online Services (ROS), where you’ll report your total income, declare any deductions or allowances, and based on the information provided, ROS will calculate your tax liability. Ensure to pay any outstanding tax by the deadline.

Claimable Expenses in Your Tax Return

Allowable expenses are directly related to your business operations and can be claimed in your tax return, including:

  • Goods for resale
  • Employees’ payment
  • Business premises rent and bills
  • Running costs for vehicles or machines
  • Pre-trading expenses like business plan preparation
  • Accountancy fees

However, personal mileage, food, clothing (except protective gear), client entertainment, and capital expenditure can’t be claimed.

Split Expenses: Business and Private Use

If an expense serves both personal and business purposes, you can claim a deduction for the business portion. This includes phone bills, motor expenses, and rent.

Saving Money on Your Tax Return

Tax credits, dependent on your personal circumstances, can reduce your tax bill. Common overlooked tax credits include the Home Carer Tax Credit, Year of Marriage Tax Credit, and the new Rent Tax Credit. Also, contributing to a pension and claiming working from home expenses can be beneficial.

Paying Your Tax Bill

Settle your tax bill online through ROS using a debit or credit card.

Preliminary Tax: What to Know

Preliminary tax is an estimate of the tax you’ll owe for the next year. You have three options for determining the preliminary tax amount:

  • Based on 100% of your 2022 tax charge
  • Based on 90% of your estimated 2023 tax charge
  • 105% of your final tax charge for the pre-preceding tax year (2021), only available when paying via monthly direct debit

Can’t Pay Your Tax Bill?

Contact Revenue immediately if you can’t pay your tax bill. They might offer a Phased Payment Arrangement (PPA) allowing you to pay in instalments.

Late Filing Consequences

Late filing can result in daily interest charges of 0.0219%, a 5% surcharge if filed within two months post-deadline (doubling to 10% thereafter), increased audit likelihood, and potential loss of government grants and subsidies.

Act swiftly if you’ve missed the deadline and contact Revenue if you have a “reasonable excuse” for being late.

This guide aims to provide a thorough understanding of the tax return process in Ireland, making it less daunting and more manageable.

Whether you opt to file the tax return yourself or engage an accountant, being well-versed with the fundamentals is crucial for a seamless tax filing experience.

Engaging an Accountant

Many choose to engage an accountant for filing their tax return. This can save time, ensure accuracy, provide peace of mind, and potentially reduce your tax liability through entitled deductions​.

we extend our expertise to thousands of self-employed individuals across Ireland, aiding them in the self-assessment tax return process. By offering a fixed, competitive price, we alleviate the stress surrounding self-assessment tax returns, enabling you to focus more on running your business. Should you need help with your income tax return, feel free to reach out to us. Submit an online enquiry for a complimentary initial consultation​. 

In conclusion, being well-informed and organised can significantly streamline the tax return filing process in Ireland, making it a less daunting task.

Whether you choose to file the tax return yourself or engage an accountant, understanding the fundamentals covered in this guide will serve you well.

Need help, check payroll services for small business

Other Latest Updates & Resources from TaxLink

Custom SVG
Call Contact Us ×

Get in touch with us