CG 9 Direct Debit - Preliminary Income Tax

Preliminary Income Tax

• Preliminary Income Tax payments can be made by way of direct debit monthly instalments.
• Payment of Preliminary Income Tax by direct debit enables you to spread the payment over the calendar year for which the tax is due instead of making one payment in October.
• If this is your first time availing of the direct debit scheme for Preliminary Tax, you must make a minimum of three payments in the first year. In essence you can join for the October, November and December deduction and use those payments to meet your Preliminary Tax liability for that year. In these circumstances the application must be submitted by September of that year.

• In the following years the Preliminary Tax payment must be made by way of eight or more equal monthly direct debit payments.
• All deductions (including the November and December direct debits) will be credited to your Preliminary Tax liability for the current year.
• Your return of income together with any balancing payment for the current year of assessment must be submitted, irrespective of the payment method, on or by the 31st October of the following year.
• The necessity to cover your Preliminary Tax liability remains the same regardless of the number of payments or when you join the scheme. Interest charges will arise in the normal manner, if you fail to pay sufficient Preliminary Tax.

The payment of Preliminary Tax necessary to avoid Interest charges must be at least:

• 90% of the final tax liability for the current year of assessment or,
• 100% of the tax liability for the preceding year of assessment or,
• 105% of the pre-preceding year for Direct Debit payers only (this option does not apply where the Income Tax payable for the pre-preceding year was NIL).

Instructions

• Complete and sign the direct debit mandate (PDF, 27KB) and return to:
  Direct Debit
  Collector General
  Sarsfield House
  Limerick
• If you wish to amend the amount of your direct debit deduction during the year, email cgdd@revenue.ie or write to the Collector General requesting the change. State your Registration Number and provide details of the change you require.
• If you change your bank or bank account number for direct debit payments, please notify the Collector-General immediately who will cancel the existing arrangement and arrange a new direct debit instruction in respect of the new account.
• You should note that in the event of any payment not being honoured, your participation in the scheme will be reviewed and your authorisation to pay by direct debit may be withdrawn.
• Deductions for Income Tax will be taken from your bank account on the 9th day of each month.
• Your application to join the Direct Debit scheme must be with the Collector-General by the last day of the month prior to the month in which you wish the first direct debit payment to be made.

Have you considered Revenue Online Service (ROS) as an alternative method of paying Preliminary Tax and Income Tax?

Related information

You can also pay PAYE/PRSI and/or VAT (CG7) by direct debit.

(Adobe Acrobat Reader PDF)

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