A Guide to Self Assessment - IT 10

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Introduction

This booklet explains the basic principles of the Self-Assessment system as it applies to Income Tax and Capital Gains Tax. It aims to make the tax system easier to understand and answers many of the questions which arise, when individuals find that they are chargeable to tax under Self-Assessment.

While we have tried to cover all the issues involved, you may need further information or help with the completion of forms. If so, contact your nearest Revenue District office If you are self-employed Revenue’s guide pdfIT48 - Starting in Business (PDF, 864KB) may be more suitable.

Contact Details for Revenue Offices

A list of contact details for all Revenue Offices is available on Revenue’s website at: Contact Details

Revenue Information Leaflets

Revenue has published a wide range of Guides and Information Leaflets. These are available, free of charge, from www.revenue.ie or the Revenue Forms and Leaflets Service Lo call 1890 306 706 (ROI only) 00 353 1 7023050 (outside ROI). This service is available 7 days a week, 24 hours a day. Many Revenue leaflets are also available from your local public library. A summary of the leaflets and guides, which may be of assistance to you, is contained in the section Information Leaflets.

Your Rights as a Taxpayer

In your dealings with Revenue you are entitled to be treated with courtesy and consideration at all times. Revenue’s Customer Service Charter sets out the principles by which we, in Revenue, operate.

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Self-Assessment

Self-Assessment is a system which gives you greater control and responsibility over your tax affairs. It applies to people chargeable to Income Tax who are in receipt of income from sources which are not chargeable to tax under the PAYE system or where some but not all of their tax on these sources of income is paid under PAYE.

Self-Assessment applies for Income Tax purposes to:

  • Self-employed persons (i.e. people carrying on their own business including farming, professions or vocations)
  • Persons receiving income from sources where some or all of the tax cannot be collected under the PAYE system, for example:
    • profits from rents,
    • investment income,
    • foreign income and foreign pensions,
    • maintenance payments to separated persons,
    • fees,
    • profit arising on exercising various Share Options/Share Incentives.

Under Self-Assessment there is a common date for the payment of tax and filing of Tax Returns, i.e. 31 October. This system, which is known as "Pay and File" allows you to file your return and pay the balance of tax outstanding for the previous year at the same time. Under this system you must:

  • pay Preliminary Tax for the current tax year on or before the 31 October each year,
  • make your Tax Return after the end of the tax year but not later than the following 31 October. This is known as the "specified return date",
  • pay any balance of tax due for the previous tax year on or before 31 October.

How do I register for Self-Assessment?

You should advise your Revenue District office when the source of income commences. You can do this by completing pdfForm TR1 - Tax Registration form for Sole Traders, Trusts and Partnerships (PDF, 401KB). This registration form is for an Individual/Sole Traders, Partnerships, Trusts or Unincorporated Bodies requiring to register for:

  • Income Tax,
  • Employers PAYE/PRSI,
  • VAT,
  • Relevant Contracts Tax (as a Principal Contractor).

When a self employed person registers with Revenue they will automatically become registered for PRSI purposes with the Department of Social Protection.

Once registered for tax purposes you should access the Revenue On-Line Service (ROS) and familiarize yourself with the many features of ROS as it is the most effective way for you as a Revenue customer to deal with your tax affairs. Further information on ROS .

What Tax Number will I use?

If you have paid tax previously you will use the same tax number. This number is known as your Personal Public Service (PPS) Number. You must enter this number on your tax registration form (pdfForm TR1 - Tax Registration form for Sole Traders, Trusts and Partnerships) (PDF, 401KB).

If you do not have a PPS Number you must first register with the Department of Social Protection. To register with that Department you should:

  • call in person to the nearest or most convenient Social Welfare Local Office or Social Welfare Branch Office, and
  • complete a PPS Number application Form REG1, and
  • present documentary evidence as requested on the application form to verify your identity.

You will be notified of your PPS Number by the issue of a Social Services Card. Leaflet SW100 'Personal Public Service Number' issued by the Department of Social Protection gives further information on how to register for your PPS Number. The leaflet is available from your Social Welfare Local Office and on the Department’s website at www.welfare.ieExternal link

Your PPS Number is very important so you should keep a permanent record of it and always quote the number when contacting your Revenue office.

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What is the Income Levy

The income levy, which came into effect on 1 January 2009, is a levy payable on aggregate income, including notional pay, before any relief for any capital allowances, losses or pension contributions. More information on the income levy is available on the Revenue website at: Income Levy

Income Levy and Preliminary Tax 2009

Preliminary Tax is your estimate of your Income Tax payable for the year and must be paid by 31 October. In calculating your Preliminary Tax you should remember that it includes PRSI, Health Contribution and Income Levy as well as Income Tax.

Preliminary tax for the income tax year 2009 is due on the 31 October 2009. To avoid interest charges, the amount of preliminary tax payable is the lower of:

  1. 90% of final liability to tax for the current tax year – 2009 or
  2. 100% of final liability to tax for the previous year – 2008 or
  3. 105% of final liability to tax for the pre-preceding year – 2007 (This option is only available where preliminary tax is paid by direct debit. This rule does not apply where the tax payable for the pre-preceding year is nil.)

The income levy due must be included in the preliminary tax payment where this payment is calculated on the basis of either (a) or (b) above.

Where (a) applies, the final liability for 2009 will include an amount for the income levy and the preliminary tax must be at least 90% of the overall liability.

Where (b) applies, in calculating the amount of preliminary tax, the liability for 2008 must be increased by an amount which is equal to the income levy that would have been payable if income levy had applied for 2008 at the same rates and bands as apply for 2009.

In calculating the amount of income levy due, credit for levy on relevant emoluments should be allowed in the following manner:

(Income levy as calculated on 2008 aggregate income using composite rates) less (Income Levy as calculated on 2008 relevant emoluments using composite rates)

For the purposes of determining the amount of income levy to be paid with the preliminary tax payment the annual composite rates of levy for 2009 should be used i.e:

  • The first €75,036 @ 1.67%
  • The next €25,064 @ 3.00%
  • The next €74,880 @ 3.33%
  • The next €75,140 @ 4.67%
  • The remainder @ 5.00%

When and how do I pay my Preliminary Tax?

Preliminary Tax must be paid on or before the 31 October every year. You can pay your Preliminary Tax as follows:

  • you can have the amount specified deducted directly from your bank account by completing the Single Debit Authority on the payslip,
  • you can pay your Preliminary Tax through the Revenue On-Line Service (ROS),
  • you can pay your tax through Bank Giro, therefore making the payment through any bank,
  • you can pay it by Direct Debit.

New Registration

If you are registering for Self-Assessment you may have difficulty in calculating your Preliminary Tax due in your first year or indeed you may register for tax after the 31 October deadline date. It is recommended that you pay Preliminary Tax as near to the final tax liability as you can estimate. In your second tax year you must comply with the 90% or 100% rule in order to meet your Preliminary Tax obligations. See the example in the section on 'When must I make my Tax Return' for further clarification.

How does Direct Debit work?

You can make arrangements with the Collector-General to pay your Preliminary Tax by Direct Debit. This scheme is designed to spread the burden of payment of Preliminary Tax throughout the tax year. To avail of Direct Debit you must complete and sign an instruction, which allows for agreed monthly deductions from your bank account, for credit to your tax account(s). You remain in total control of the monthly amounts(s) you have agreed to pay.

Information Leaflet CG9 (DD) Preliminary Income Tax gives further information and also contains an application to join the Direct Debit Scheme. This leaflet is also available from the Collector General’s Division by phoning Lo-Call 1890 203 070 (ROI only), 00353 + 61 488000 (outside ROI) or by e-mail at cgdd@revenue.ie

What are the advantages of paying my tax by Direct Debit?

By paying your Preliminary Tax by Direct Debit you can spread the payment over the tax year for which the tax is due. Direct Debit is particularly suitable for people who receive their income at regular intervals such as weekly or monthly. It avoids having to pay a lump sum in October each year.

How else can I pay my tax?

The notices of assessment which you receive include customised payslips. These payslips contain details such as your PPS number, the tax type and the tax period. The payslip allows you to make your payment in the following ways:

Certain payslips allow you to pay your tax by Single Debit Authority.

Single Debit Authority enables you to make once-off payments directly from your bank account by completing your bank details and a debit amount on payslips attached to:

  • Income Tax Pay & File notice of assessment,
  • Capital Gains Tax Pay & File notice of assessment ,
  • Return of Income Form 11,
  • Return of Income Form 11E,

Payments through Single Debit Authority, similar to those made through the Revenue-On-Line Service, receive credit on the day of payment.

Revenue On-Line Service (ROS) provides you with the following methods of payment of tax:

  • ROS Debit Instruction (RDI),
  • Laser Card via ROS,
  • On-Line Banking via ROS (Income Tax and Capital Gains Tax only).

Further information on Revenue On-Line Service payment options

Postal Payments

You can post your cheque payment to the:

Collector-General’s Division,
Sarsfield House,
Francis Street,
Limerick.

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 day of receipt. Use the payslip provided to record ‘nil’ payments → Enter 0.

What happens if I don't pay my Preliminary Tax on time?

If you don’t pay your Preliminary Tax by the 31 October or if you don't comply with your direct debit arrangement or if the amount of Preliminary Tax you pay is too low you will be liable to an interest charge. The due date for the payment of your full tax liability for the year becomes 31 October.

Interest is due on late payments of tax, for each day or part of a day
Rate Period
0.0273% 1/4/2005 to 30/6/2009
0.0219% From 1/7/2009

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Tax Returns

When must I make my Tax Return?

Under the Self-Assessment system, you have a legal duty to make a tax return every year.

Tax returns will be issued to all persons on Revenue’s records who are considered likely to have a tax liability. However, it is your responsibility to see to it that you get, complete and submit your tax return on time. Your tax return must be sent to the Collector-General’s Division by 31 October after the end of the tax year i.e. your tax return for the tax year 2008 must be sent in by 31 October 2009. However, you should send in your tax return as soon as possible after the end of the tax year i.e. you should send in your tax return for 2008 as soon as possible after 1 January 2009, etc. The earlier you send in your tax return, the sooner you will know your final liability for the tax year - this can be important when it comes to paying the balance due and calculating your Preliminary Tax for the following year.

The following example illustrates the Preliminary Tax Payment dates and the Return Filing dates.

As an ongoing Self-Assessment person you must:

  • pay Preliminary Tax annually on or before 31 October,
  • file your tax return after the 31 December, but not later than the 31 October following the end of the tax year. The 31 October is known as the "specified return date",
  • pay any balance of Income Tax due for the preceding year on or before 31 October.

Persons coming into Self-Assessment for the first time

You are advised to make a payment of 90% of the estimated liability for the first year of trading. If, for example, your tax affairs for 2008 were dealt with under PAYE and you commence as a self-employed person in 2009 you can make a payment of Preliminary Tax on 31 October 2009.

Note that if you chose the option to pay Preliminary Tax of 100% of the previous year's liability (i.e. liability - net of PAYE tax but increased to take into account the amount of income levy that would have been paid had the income levy applied in 2008) a payment of Preliminary Tax does not generally arise for the first year.

An individual, who enters the self-assessment system because they have commenced in trading, have until the return filing date for the second year to submit tax returns for both the first and second year trading. However, as mentioned previously, early filing of returns is advisable, as it allows an individual to know in advance of payment deadlines what tax is due.

Early filing does not bring forward the payment date

However, if you commenced as a self-employed person in 2008 you must, under the Pay & File system:

  • pay Preliminary Tax for 2008 on or before 31 October 2008,
  • pay the balance of Income Tax due, if any, for 2008 on or before 31 October 2009,
  • pay Preliminary Tax for 2009 on or before 31 October 2009,
  • pay the balance of Income Tax due for 2009 on or before 31 October 2010,
  • file your tax return for 2008 and 2009 on or before 31 October 2010.

What happens after I have made my Tax Return?

Your Inspector will issue a Notice of Assessment in accordance with your return. This will show your total tax liability for the tax year. The Preliminary Tax paid by you will be credited against your liability and provided you paid adequate Preliminary Tax, any additional tax due should be paid on or before 31 October following the year of assessment. If you have overpaid your tax it will be refunded to you.

What happens if I do not submit my Return on time?

Failure to submit your tax return by 31 October after the end of the tax year will result in a surcharge being added to your tax bill for the year. The surcharge is:

  • 5% of the tax up to a maximum of €12,695 where the return is made within 2 months of the return filing date,
  • 10% of the tax up to a maximum of €63,485 where the return is made more than 2 months after the return filing date.

What income do I include on my Tax Return?

Your tax assessment is normally based on your actual income arising from the 1 January to the following 31 December. However, if your income consists of profits from a business, trade, profession or vocation you may decide to prepare your accounts for a different accounting period. Assessments in respect of any other income i.e. investment income, rental income, foreign pension or foreign salary are all based on the actual income arising in the tax year (i.e. from 1 January to the following 31 December).

What type of accounts will I have to submit with my tax return?

You are no longer required to submit your self-employed business accounts with your return of income. You must still, however, prepare accounts and then extract the relevant information from your accounts for entry in the Extracts From Accounts pages of the Return of Income, Form 11 or Form 11E, as applicable. These pages are essentially an extract from your accounts and NOT a tax adjustment computation. You do not have to complete the Extracts from Accounts if the source of income results from a partnership or if you have already submitted accounts relating to the return.

What accounts data do I submit if I am filing with ROS?

More detailed information on ROS . If you are filing electronically with the Revenue On-Line Service you must submit Accounts Menus. In order to ensure equality of treatment between paper filers and electronic filers, paper filers are required to submit the same level and format of data as electronic filers. Electronic data will not be subjected to electronic interrogation until the same data from paper filers is captured.

What do I do if I find I made an error in completing my Return?

If you get an assessment in accordance with your Tax Return but you find you made an error in completing your Return you should write immediately to your Inspector explaining what the error is and how it occurred. The Inspector will amend your assessment as necessary to correct the situation.

What happens if I do not agree with my notice of assessment?

If the assessment is in accordance with your Return and you have made a correct Return then you have no grounds for not agreeing with it. If the assessment is not in accordance with your Return and you disagree with it, you may appeal against it by writing to your Inspector within 30 days from the date on the notice of assessment.

When making your appeal you must:

  • identify the specific matter with which you do not agree,
  • pay the amount of tax not in dispute within one month of the date on the notice of assessment.

If you fulfil these conditions your appeal will be accepted and your Inspector will discuss your appeal with you and, hopefully, resolve it. If you and your Inspector fail to resolve the matter, you have the right to have your appeal heard by the Appeal Commissioners and, if necessary, you can take your appeal further through the courts.

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Pay and File System

The Pay and File system provides the facility for you, on a single due date – 31 October, to:

  • File your tax return for the previous tax year for Income Tax and Capital Gains Tax,
  • Pay your Preliminary Tax for the current tax year,
  • Pay any balance of Income Tax due for the previous tax year.

The single due date, 31 October, will allow you to pay and file at the one time. This date is referred to as the specified return date.

An important point to note is that if you wait until the Pay and File deadline of 31 October to file your return you will need to calculate your own tax liability.

If you are filing a paper tax return and you do so before 31 August (early filer) Revenue will issue a final tax assessment for the relevant year in advance of the 31 October deadline, in time to pay your actual liability. This will save you having to do the calculations and you will have certainty in the amount of tax you have to pay, including Preliminary Tax for the current year. Submitting your return form early will not result in Revenue seeking payment of tax before it is due.

Alternatively, you can compute your own liability to Income Tax and submit your completed Income Tax return together with any payment that may be due on or before 31 October.

All payments should be aggregated on a single personalised payslip and the return and payment should be filed either –

  • On-Line – using the Revenue On-Line Service (ROS), or
  • By post to the Office of the Revenue Commissioners, Collector-General's Division, PO Box 354, Limerick, to arrive on or before 31 October.

More information on how to file your Income Tax return and pay your tax on-line using Revenue’s On-Line Service (ROS) is available at Revenue On-Line Service (ROS).

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Revenue On-line Service (ROS)

What is the Revenue On-Line Service (ROS)?

ROS is Revenue’s secure interactive internet-based facility and it is the most effective way for businesses to:

  • File Returns and make payments
  • Obtain details of their Revenue account
  • Calculate their tax
  • Claim repayments
  • Conduct their business electronically

What are the benefits of using ROS?

The benefits of ROS include:

  • Instant acknowledgement
  • Effective and efficient use of time - no duplication
  • Elimination of clerical error
  • Secure 24 x 7 access
  • On-Line calculation facilities
  • Simpler user friendly return forms
  • Speedier Repayments
  • Environmentally friendly
  • Customers who e-file and e-pay for Corporation Tax, Relevant Contracts Tax, Value Added Tax and Employer PAYE/PRSI can avail of an extended pay and file date to 23 of each month.

What facilities does ROS provide?

The following forms can now be filed through ROS together with payments where appropriate

  • VAT (VAT3 & annual Return of Trading Details)
  • Employers Payroll returns (P30, P35 and P45/P46)
  • A P60 template is available on the ROS online and offline application for 2008 onwards
  • Income Tax Form 11 (Self Employed Individuals)
  • Form 1 (Firms)
  • Form 1 (Trusts & Estates)
  • Form RR1
  • Corporation Tax (Form CT1)
  • VIES and INTRASTAT Returns
  • Vehicle Registration Tax (VRT40, Vehicle Birth Certificates and Registration forms)
  • Relevant Contract Tax Returns (RCT30 and RCT35)
  • Environmental Levy Returns
  • Dividend Withholding Tax Returns
  • Professional Services Withholding Tax Returns (F30 and F35)
  • Special Saving Incentive Account Returns
  • Deposit Interest Retention Tax Returns
  • EU Savings directive return
  • Life Assurance Exit Tax Returns
  • Investment Undertaking Tax Returns
  • Gift and Inheritance Tax Returns (IT38)
  • Common Agricultural Policy (CAP) Export Declarations
  • Betting Duty Returns
  • VAT on eServices
  • Transit Declarations
  • A facility is available for ROS Business Customers and Agents to check if a Tax Clearance Certificate is valid.
  • A facility where employers can download Tax Credit Certificates (P2Cs) via ROS. This data can be exported to the customers payroll system. Payroll agents can also download the P2C via ROS on behalf of their clients. For this the employer must be registered for ROS and have elected to receive P2Cs electronically,
  • A facility for customers and agents to make CGT payments for IT-registered customers who are not yet registered for CGT.

Facilities are also available to order a statement of account and to access the Vehicle Registration Tax Calculator and Enquiry System.

You can view details of your Revenue account including such items as:

  • Returns filed and due
  • Payments made
  • Refunds and Repayments
  • Charges and collection: details of tax due and paid

Other features include:

  • Employers can receive P2cs directly to their ROS inbox
  • A secure mailbox housed on the ROS site where copies of all documents are kept. These can be accessed at any time using the search facility
  • Both on-line and off-line facilities. The off-line system allows you to complete the forms on your own PC without being logged on to the Internet. Once the off-line form is complete simply log on to the ROS site and upload the completed form
  • There is a detailed Help system, as well as Frequently Asked Questions (FAQs) and Demonstrations throughout the site
  • LoCall Helpdesk to assist customers with queries
  • The system operates on most platforms and browsers
  • The system is compatible with screen reader technology for visually impaired customers
  • An access control system which allows you to control who in your business can carry out transactions on ROS
  • A facility to order a statement of account
  • Access to the Vehicle Registration Tax Calculator and Enquiry System
  • Excise Licences can be renewed through ROS
  • Air travel tax monthly payment facility.

How do I access ROS?

ROS can be accessed via the Revenue website www.revenue.ie. You can explore a number of features of ROS from the ROS homepage without any requirement to register. These include a section on “Frequently Asked Questions” which covers issues as basic as “What is ROS?”.

How do I register for ROS?

ROS has a simple three-step registration process. From the ROS homepage click on ‘Register’ under the Self-employed Individuals, Business and Practitioners heading and follow the 3 step process. You will be issued with a Digital Certificate when you have completed the 3 steps. Your Digital Certificate enables you to access ROS and utilise its full menu of services.

To ensure the security of the service, the authentication procedure involves issuing correspondence via land mail. The whole process typically takes 8 working days, so you should be sure to start the process well in advance of any filing deadlines that may apply.

Is ROS confidential and secure?

You want to be certain that information accessed or transmitted on the Internet is Secure. We have invested considerable time and expertise to safeguard the security of ROS. We are using the latest technologies to ensure a confidential and secure channel for the electronic filing of returns. Confidentiality and integrity of the data transmitted through ROS is assured.

How do I pay my tax using ROS?

There are currently 3 methods of making payments through ROS:

  • ROS Debit Instruction (RDI),
  • Laser Card,
  • On-Line Banking facility (Income Tax and Capital Gains Tax only).

Who can I contact with queries on ROS?

ROS Liaison Officers (RLOs) have been assigned to Revenue Offices throughout the country. If you require further information or assistance regarding ROS you should contact the RLO in your area. You can view the full list of RLOs from the ‘Contact Us’ link or from the ‘Help’ link at the end of the ROS Homepage which can be accessed at www.revenue.ie

You can also contact the ROS Information Desk at Lo Call 1890 20 11 06 or, for callers outside the Republic of Ireland + 353 1 6744421, who will answer your queries on any technical issues concerning ROS. You can also e-mail ROS at roshelp@revenue.ie

Employees

A comprehensive range of on-line Self Services for Employees is now available in ROS:

  • View personal tax record
  • Claim a wide range of tax credits on-line
  • Apply for refunds of tax including health expenses
  • Request a review of personal tax (balancing statement/P21) for 2005 onwards
  • Re-allocate credits between spouses and employments
  • Change personal address and update other personal information

Find out more at: About PAYE Anytime on the Revenue website.

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PRSI and Health Contributions

Who pays PRSI?

With very few exceptions:

  • Self-employed people with a minimum annual income who are aged 16 or over and under 66, are liable for Pay-Related Social Insurance (PRSI) contributions.
  • All employees whether full-time or part-time who are aged 16 and over and under 66.

What PRSI and Health Contributions will I have to pay?

Persons taxed under the self-assessment tax system are in general liable to pay PRSI at Class S. The Class S annual rates are listed in Leaflet IT1 - Tax Credits, Reliefs and Rates. The minimum PRSI contribution for 2010 is €253. You can also obtain full details of all PRSI rates from the Department of Social Protection at the address and telephone numbers below.

Where a self-employed person is deemed by Revenue to have no net tax liability (NNL), a flat rate of PRSI is payable directly to the Department of Social Protection. This flat rate is taken into account when determining pension entitlement. To be liable to pay the flat rate it is necessary to have annual income of €3,174.

Class S PRSI is not payable on income taxed under Self-Assessment by a person:

  • whose total income from all sources, before deduction of capital allowances and pension contributions is less than €3,174, or
  • who is an employee (other than a proprietary director) or an occupational pensioner and whose self assessed income consists only of unearned income (for example deposit interest, rents, etc.), or
  • who is a public servant paying Class B, C or D PRSI and who is also self-employed, or
  • who is under 16 years or over 66 years of age, or
  • who is in receipt of Pre-Retirement Allowance on an ongoing basis, or
  • who is not resident or ordinarily resident in the State and whose self assessed income consists only of unearned income (for example deposit interest, rents, etc.).

Any sums received by way of pension, benefit, etc. from the Department of Social Protection, are exempt from PRSI.

More detailed information on PRSI for the Self-Employed is included in the Department of Social Protection guide A Guide to PRSI for the Self-Employed (SW74)External link or

Self –Employment Section,
Social Welfare Services Office,
Cork Road,
Waterford.
E-mail:selfemployment@welfare.ie
Telephone: (051) 356 000 / (01) 704 3000

What Benefit may I get by paying Class S PRSI?

PRSI Class S provides cover for:

  • Widow’s and Widower’s Contributory Pension,
  • Guardian’s Payment (Contributory),
  • State Pension (Contributory),
  • Maternity Benefit,
  • Adoptive Benefit, and
  • Bereavement Grant.

How do I register for PRSI?

When a self-employed person registers with Revenue (see How Do I Register For Self-Assessment) they will automatically become registered for PRSI purposes with the Department of Social Protection.

Once you are registered as a self-employed person, the Department of Social Protection will be able to keep your social insurance record up to date, helping to avoid any delays to social welfare claims that you may make in the future.

More detailed information on PRSI for the Self-Employed is included in the Department of Social Protection guide A Guide to PRSI for the Self-Employed (SW74)External linkor from,

Self-Employment Section,
Social Welfare Services Office,
Cork Road,
Waterford.

E-mail: selfemployment@welfare.ie

Telephone: (051) 356 000 / (01) 704 3000

Health Contribution

The Health Contribution is payable by people aged 16 years or over and under 70 years. It is payable on your total income with the exception of income that has already had the Health Contribution deducted at source, i.e. salaries, etc., and income from the following sources - patent royalties, tax exempt artist income, tax exempt profits from the provision of certain childcare services, and tax exempt profits from woodlands.

The annual rates are listed in Leaflet IT1 - Tax Credits, Reliefs and Rates.

You are exempt from the Health Contribution where:

  • your income is less than €26,000 (€500 per week), or
  • you qualify for a full Medical Card, or
  • You are aged 70 years or over, or
  • you are in receipt of any of the following Social Welfare Benefits:
    • Widow’s/Widower’s Contributory Pension,
    • Widow’s (Non-Contributory) Pension,
    • Deserted Wife’s Benefit,
    • Deserted Wife’s Allowance,
    • Death Benefit,
    • One-Parent Family Payment, or
  • you are in receipt of a corresponding Widow’s or Widower’s Pension from another EU Member State.

Revenue Audit & Records

What is a Revenue Audit?

Under Self-Assessment, your tax return will be accepted by your Inspector of Taxes. However, your Income tax return may be selected for audit, in which case your records will be examined.

A Revenue audit is an examination of your tax return and records by a Revenue official to ensure that all profits, income and chargeable gains, where relevant, are correctly calculated and that none are omitted from the return. An audit may also be carried out to check that tax credits, reliefs, etc. claimed are due. Every year, a number of taxpayers are selected for audit. A taxpayer may be selected for varying reasons or on a random basis.

What advance notice will I be given?

Generally, twenty-one days’ advance notice in writing is given. The notification letter shows:

  • The name of the person who will carry out the audit,
  • The date and time of the audit,
  • The year(s), accounting period(s) or tax period(s) which are to be audited.

Where can I get further information on Revenue Audits?

pdfThe Code of Practice for Revenue Auditors (PDF, 906KB) which is available from Revenue’s website www.revenue.ie or from Revenue Forms and Leaflets Service at 1890 306 706 (ROI only) or 00353 1 7023050 (outside ROI) or any Revenue Office.

What records must I keep?

You must keep full and accurate records of your business from the start. You need to do this whether you send in a simple summary of your profit/loss, prepare the accounts yourself, or, have an accountant do it. The records you keep must be sufficient to enable you to make a proper return of income for tax purposes and will depend on the nature and size of your trade, business or source of income.

The records kept must include books of account in which:

  • All purchases and sales of goods and services, and
  • All amounts received and all amounts paid out,

are recorded in a manner that will clearly show the amounts involved and the matters to which they relate.

All supporting records such as invoices, bank and building society statements, cheque stubs, receipts, rent books, etc. should also be retained.

How long must I keep Records?

You must keep your records for six years unless Revenue advises you otherwise.

What happens if I fail to keep proper Records?

Failure to keep proper records or failure to keep them for the necessary six years, where you are chargeable to tax, is a Revenue offence. If you are convicted of a Revenue offence you face a heavy fine and/or imprisonment.

Do I need to employ an Accountant?

In order to complete your tax returns and claim the various tax credits and reliefs due to you it is not necessary to employ an accountant or tax adviser. However, for specific advice on book-keeping and financial matters generally it would be in your own interest to engage an accountant or tax adviser. Revenue will normally correspond with your accountant, if you have one, and not with you.

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Capital Gains Tax Self-Assessment

What is Capital Gains Tax?

Capital Gains Tax (CGT) is a tax which is payable on gains made on the disposal of certain assets. The more common chargeable assets are land, houses and shares, however other forms of property may also be chargeable assets.

How does Self-Assessment operate for Capital Gains Tax?

Self-Assessment for Capital Gains Tax operates in much the same way as for Income Tax, with the following variations:

  • Self Assessment applies to all Taxpayers, including PAYE taxpayers, who make a chargeable gain in a tax year,
  • the payment date will depend on when the disposal was made during the year,
  • Preliminary Tax is not payable in the case of Capital Gains Tax.

2008 Captal Gains Tax

For 2008, the due date for paying CGT was determined by the date the asset was disposed of, as follows:

  • disposals between 1 January and 30 September 2008 (‘initial period’) - CGT due by 31 October 2008,
  • disposals between 1 October and 31 December 2008 (‘later period’) - CGT due by 31 January 2009.

2009 Capital Gains Tax

Gains arising in the year 2009 should be included in your 2009 Return.

However you should note that for 2009 and subsequent years the tax year is divided into a revised set of two periods for CGT payment purposes, as follows:

  • 'initial period' - 1 January 2009 to 30 November 2009, both inclusive.
  • 'later period' - 1 December 2009 - 31 December 2009, both inclusive.

The due dates for payment of CGT are now as follows:

  • Disposals in the initial period: Tax due by 15 December 2009 (in the same tax year).
  • Disposals in the later period: Tax due by 31 January 2010 (in the following tax year).

Indexation relief on disposals will apply for the period of ownership of the asset up to 31 December 2002 only.

Normally Capital Gains Tax will arise only occasionally. Therefore you must return and pay Capital Gains Tax without getting a reminder letter to do so.

The Capital Gains Tax return, which can be either part of the Income Tax return or, where a tax return is not otherwise required the dedicated CGT return Form CG1, must be made by the 31 October in the year following the year in which the gain was made.

Payment of CGT is made by sending the payment, along with the appropriate CGT Payslip for when the gain was made (pdfPayslip A (PDF, 79KB) for the initial period, pdfPayslip B (PDF, 79KB) for the later period) to:

Collector-General’s Division
Sarsfield House
Francis Street
Limerick

Blank CGT payslips are available from any Revenue District office.

If you need more information on Capital Gains Tax, you can get booklet pdfCGT1 - Guide to Capital Gains Tax (PDF, 217KB) from the Revenue website or by telephoning the Revenue Forms and Leaflets Service at:

  • Lo Call 1890 306 706 (Republic of Ireland (ROI) only) or
  • 00353 1 7023050 (from outside ROI) or
  • from any Revenue office.

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Timetable of Important Dates in the Tax Year

January

  • Pay any Capital Gains Tax due on disposals made in the later period 1 December to 31 December in the previous tax year by 31 January.

August

  • File your tax return for the previous tax year, if you wish Revenue to calculate your final liability before Pay & File due date (31 October), by 31 August

September

  • Pay & File Payment Reminder letters will begin to issue. This serves as a reminder that:
    • Payment of Preliminary Tax for the current year of assessment, and
    • Payment of Balance of Income Tax for previous year, must be paid by 31 October.

October

  • Pay current year Preliminary Tax by 31 October
  • File your tax return by 31 October. Failure to send your completed tax return by this date will result in a surcharge (5% where the return is submitted within two months, otherwise 10%) being added to your final tax bill
  • Pay balance of tax for previous year by 31 October
  • File Capital Gains Tax return for previous tax year by 31 October

December

  • Pay any Capital Gains Tax due on disposals made in the initial period 1 January to 30 November in the current tax year by 15 December (in the same tax year).

For a comprehensive listing, see Calendar - Key Revenue Dates on Revenue’s website.

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Information Leaflets

The following information leaflets may be of interest to you

Income Tax

Capital Gains Tax

See also: pdfAgent’s Guide to the Collector-General’s Division (PDF, 260KB)

The above are only a selection of the information leaflets produced by Revenue. All are available at www.revenue.ie or from Revenue's Forms & Leaflets Service at Lo call 1890 360 706 (for the Republic of Ireland (ROI)), 00 353 1 702 3050 (from outside ROI) or from any Revenue office.

Customer Service Charter

Customer Service Charter

(Adobe Acrobat Reader PDFExternal link)

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