Paying your Tax
- Mandatory e-Filing/Payment
- What is ‘Pay and File’?
- What should I do to Pay & File through ROS?
- Direct Debit
- Other Payment Methods
- Some common mistakes and guidance in the completion of tax returns
Mandatory electronic payments and filing, using Revenue's Online Service (ROS), is part of Revenue's strategy to establish the use of electronic channels as the normal way of conducting tax business.
ROS is an internet facility which provides you with a quick and secure facility to pay tax liabilities, file tax returns, access your tax details and claim repayments. The ROS facilities are available 24 hours a day, 7 days a week, 365 days a year. You can benefit from an extension to existing deadlines for paying tax and filing returns where you both pay and file using ROS.
Since 2009 the categories of taxpayers obliged to pay and file electronically has been expanding. The categories of taxpayer currently required to pay and file returns electronically include:
- All companies, trusts and partnerships
- Employers with 10 or more employees
- VAT registered cases
- Individuals who avail of certain reliefs and exemptions
- Certain categories of self employed individuals
- From 01 January 2015 all new IT registrations.
Further information on Mandatory e-Filing is available at Online Services/ROS/Mandatory e-Filing
What is 'Pay and File'?
Pay and File; is a system whereby individuals who are taxed under self-assessment and individuals who have non PAYE income, such as rental or investment income must complete the appropriate Form 11 return and make the payment by the 31 October.
This date is extended for customers who both pay and file through ROS. For example, in the case of customers who file the 2012 Form 11 return and make the appropriate payment through ROS for:
- Preliminary Tax for 2013 and
- Income Tax balance due for 2012,
the due date is extended to Thursday, 14th November 2013.
Beneficiaries who received gifts or inheritances with valuation dates in the year ended 31st August 2013 must make a Capital Acquisitions Tax (CAT) return and payment by 31 October. If the return and payment is filed through ROS, the due date is also extended to Thursday, 14th November 2013.
To qualify for the extension, customers must both pay and file through ROS. Where only one of these actions is completed through ROS, the extension does not apply and the required date to submit both returns and payments is no later than 31st October 2013.
What should I do to Pay & File through ROS?
Register Early – When you register for ROS, you should allow at least 8 working days to complete the registration process.
If you are already registered, you must ensure that your Digital Cert is active – Log into ROS in advance of the filing date to check this.
ROS Offline Application
Check that you have the latest version of the ROS Offline application – Version 7.1 - and the latest version of the Form 11.
Detailed Help is available within the Form 11 to assist you in completing each panel and this can be accessed by clicking the Help icon on screen.
If you need help with a tax technical query, you should contact your local Revenue District. Contact details for your District can be found using the Contact Locator on our website.
ROS Payment Methods
If you are paying by ROS Debit Instruction (RDI) you should check that your RDI is in place in advance of the filing date. Further information on RDIs is available at ROS Payment Services
If payment is being made by Debit card or online banking, please note that your bank may have monetary thresholds i.e. daily limits.
You can also pay by credit card (limited to VISA and MasterCard). If you pay by credit card, you must pay a transaction charge of 1.49% of the value of the payment. This charge is purely related to third party fees incurred by Revenue in the provision of the service.
Ideally the Statement of Net Liabilities (SNL) and the Form 11 should be filed on the same day.
Pre-Populated Form 11
If you are using the pre-populated Form 11, please check to ensure the information on the pre-populated form is correct.
PAYE/PRSI & VAT
You can pay your PAYE/PRSI and VAT by monthly direct debit payments. Applications to avail of the Direct Debit facility are confined to customers with bi-monthly VAT liabilities up to €50,000 and monthly PAYE/PRSI liabilities up to €25,000.
Advantages of Direct Debit for PAYE/PRSI and VAT
Direct debit reduces Revenue paperwork requirements and assists cashflow planning for your business. You will only have to fill in one annual return as follows:
- For PAYE/PRSI, you will only need to file one annual P35 return on or before the 15th February. No monthly P30 returns are required.
- For VAT, you will only need to file one annual VAT3 return on or before the 19th day of the month following the end of the VAT accounting year. No interim returns are required.
- If taxes are being paid by direct debit, late payment of tax does not arise during the year.
If your business is seasonal, Revenue provides a facility to allow you to vary up to a maximum of three payments in a 12-month period.
Further information on Direct Debit is available at Online Services/ROS/Direct Debit On-Line
Other Payment Methods
Single Debit Authority enables once-off payments to be made directly from your bank account by completing the relevant bank details and debit amount on the payslip provided.
Cheque payments submitted with the appropriate payslip and delivered in time to be included with normal bank lodgements, will be credited to the taxpayer’s account on the date of receipt.
Some common mistakes and guidance in the completion of tax returns
Common mistakes in the completion of Income Tax returns
The following is a list of the most common mistakes made in the completion of the Form 11, Income Tax return.
Section A - Personal Details
Spouse’s or Civil Partners details are omitted.
If married or in a civil partnership you should enter your spouse’s or civil partner’s PPS number and date of birth. If your spouse has no PPS number you should enter their pre-marriage surname, first name(s) and date of birth. In the case of a civil partner you should enter their surname, first name(s) and date of birth.
Section B - Income from Trades, Professions or Vocations
The amount of adjusted net profit for accounting period entered has been calculated incorrectly.
When calculating net profit you should not deduct drawings as an expense. When calculating adjusted net profit you should add back the private element of certain expenses (motor, telephone, light & heat etc.).
Accounts Information Period
Incorrect accounts information period has been entered or accounts information period has been omitted.
The accounts information period must be entered in the format DD/MM/YYYY.
Expenses and Deductions
Drawings have been included at Salaries/Wages, Staff costs.
Payments to the owner of the business should not be included here.
Capital Account and Balance Sheet Items
Incorrect amount entered for Tax Creditors.
This entry should be the amount of VAT, PAYE, Income Tax, Relevant Contracts Tax, Capital Gains Tax etc. owing at the end of the accounting period.
Extracts from Adjusted Net Profit/Loss Computation
Entries have been made at both "Net Profit per Accounts" and "Net Loss per Accounts".
There should be a single entry at one of these lines.
Adjustments made to Profit/Loss per accounts
Incorrect amounts are entered.
The amounts to be entered here are the amounts to be added back to the net profit to arrive at the assessable profit.
Section I - Claim for Tax Credits, Allowances, Reliefs and Health Expenses
Rent Tax Credit has been claimed when payment of rent commenced after 07/12/2010.
You should not claim Rent Tax Credit unless you were paying rent under a tenancy on 7/12/2010.
The document below, while primarily directed at tax practitioners, provides further information regarding the completion of Form 11 and CT1 returns.
Revenue Guidance on completion of Form 11 and CT1 (PDF, 203KB)