It is fast approaching that time of the year again when tax matters loom and the frantic search for all the relevant information begins.
However, people are responsible for filing their own returns and it is a daunting task for most and we are there to help everyone become aware of their obligations in this regard.
Personal Tax:
- Balance of Income Tax for 2009 plus
- Preliminary Tax (Income) for 2010 plus
- Preliminary Tax (Capital Gains) on gains on asset disposals from 1 January 2010 to 30 November 2010
The payments above must be made by 31 October 2010 unless the return is filed and the payment is also made online, in which case the deadline is the Monday 16 November 2010. Note for a Capital Gains Tax incurred between the 1st December 2009 and 30th November 2010, the payment deadline is 15th December 2010.
Corporation Tax
- 21st day of the 11th month of the Company's accounting year. This deadline has been extended to 23rd day of the 11th month when paying online.
- If the annual liability is in excess of €200,000, the payment is split into two instalments; 50% on the 21st day of the 6th month and the the balance on the 21st day of the 11th month. This deadline is extended to the 23rd day where payments are made online.
You and your business! That is; all Chargeable Persons and entities. This includes all persons who are either a Sole Traders or an individual who is a partner in a Partnership or is a Company Director.
Limited Companies, as separate legal entities, are chargeable persons!
The rules for determining income of a Limited Company, which is subject to corporation tax are similar to the rules for calculating the income for individuals, sole traders and partners.
Companies, under special conditions can claim relief from Deposit Interest Retention Tax and can receive their interest income gross.
There are special tax credits for Research and Development and for encouraging greater employment.
There are also special rules for the treatment of franked investment income, dividend income.
In the case of "close" companies, there are surcharges for non distribution of investment income within 18 months of the company's year end.
Companies are not entitled to tax credits, allowances and reliefs normally given to individuals as discussed in the following paragraphs.
For more information email us at tax@fixmytax.com. Terms and conditions apply.
A Tax Return filed within two months of the tax filing deadline is subject to 5% of the outstanding tax liability.
A Return filed more than two months after the tax filing deadline is subject to a 10% of the outstanding tax liability.
In the case of a director the late filing surcharge is calculated on the liability before taking into account PAYE paid during the year.
Penalties for late payment
Interest will be charged at a 0.0322% per day on underpayments.
For more information, email us at tax@fixmytax.com. Terms and conditions apply.
The first section of the Income Tax return deals with the various sources of Income that can arise. When an individual is self employed their main source of income will normally be one of the following:
- Profit form sole trader accounts
- Share of profit from partnership accounts
- Directors salary and other benefits
The other most common sources of income that arise are rental income, dividends from Irish and UK companies and deposit interest.
Although deposit interest is subject to tax at source it is still necessary to include details of the amount earned on your Income tax return. However, where tax has been deducted at 20% there is no further liability to Income Tax.
Irish dividends are also subject to a deduction of tax at source. It is necessary to return the gross amount of the dividends for the year. This amount is taxed at your higher rate of Income Tax but you are given a credit for the tax already deducted.
UK dividends are subject to UK tax at source. However, this amount is ignored and you are required to return details of the net amount of the dividend i.e. the amount you received in cash. This amount is taxed at your higher rate of tax.
Rental Income
Where an individual receives rental income from any property they are required to return the details of this income on their income tax return. The amount to be returned is the gross amount of the rent received. However, this figure can be reduced by the following expenses:
- Interest on monies borrowed to purchase or repair the property. It is important to look at what the money borrowed was used for, rather that what property money is secured against. When deciding whether to allow the interest relief the Revenue will look at how the money was spent rather than where it came from.
- Cost of goods and services provided in relation to the letting i.e. gas, electricity, telephone rental, cable T.V.
- Management fees and letting fees
- Legal fees in relation to drawing up leases and rent collection
- Insurance costs
- Repairs and maintenance fees i.e. repainting and decorating, mending broken doors, windows, furniture etc.
- Certain mortgage Protection premiums
- Wear & tear on furniture – the cost of providing furniture can be written off at a rate of 12.5% per annum. A list of expenditure incurred should be retained each year.
No expenses incurred prior to the date of the first letting is deductible with the exception of legal fees & letting fees incurred in getting the tenant. In addition expenditure on furniture and fittings would also arise before the first letting. No expenses incurred after a period of letting ceases is allowed as a deduction. However, where there is a gap between lettings expenses incurred during this period are allowed provided the landlord does not occupy the premises during this time.
For more information email us at tax@fixmytax.com.
Limited Companies are required to file an annual corporation tax return and avoid the interest, penalties and surcharges applied for late filing.
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Individuals are required to file an annual income tax return and avoid the interest, penalties and surcharges applied for late filing.
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Putting aside some time to employe us to complete the task correctly for you will ensure that you are reducing your Tax bills to a minimum.
