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Pay & File Deadline Extension for Self-Assessed

The deadline for all self-assessed individuals to file their Form 11 tax return & submit payment has been extended, Revenue have announced.

Clients that file their 2019 Form 11 return and pay the following;

  • Preliminary Tax due for 2020
  • Income Tax Balance for 2019

Will qualify for the extended due date of Thursday, 12th November 2020.

As with every year, as it is an extremely busy period, we would advise all our clients that in order to give enough time to review your tax year and to submit it on time, paperwork must be submitted as soon as possible for 2019.

Your tax return can be filed at any time between now and the deadline.

Here are 5 reasons why you should file your Tax Return early this year…

  1. Plan Ahead

If you file your return and are due to pay a liability, this is due by 31st October (or the extension deadline as per above). Therefore, if you’re liability is calculated in advance, it gives you time to prepare and budget.

  1. Less Stress

Submitting your paperwork to your accountant early means there is less pressure on both sides to complete and file your return on time. Giving your accountant more time to prepare and review your return. If your paperwork is received late or too near the deadline, your accountant may not be able to guarantee filing it on time.

  1. Avoid Surcharges

If your return is filed after the deadline of 31st October (or the extension deadline as per above), you will be subject to surcharges and interest owed. You also run a higher risk of being selected for an audit.

  1. More efficient

The longer you leave your return nearer the deadline, the busier Revenue will be. If you are due a refund, the sooner you apply for this the better as you may need to wait a lot longer once we approach 31st October deadline due to the volumes of returns Revenue need to process.

  1. Peace of mind

Being more organised and submitting your return early, gives you that peace of mind that you have completed your tax obligations and won’t have that rush in October.

Contact us today to begin preparing your 2019 return on 01 539 7999 or info@itasaccounting.ie

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Did you recently get married? It may pay to let Revenue know!

Once you are married, it may be worth contacting your local tax office to advise them, as you may be due a tax refund!

In the year of marriage, both partners are treated as single people, if the result of your assessment as single people is greater than the tax you would pay if you were assessed as a married couple, a refund of the difference is due to you.

This rebate usually occurs where a couple are taxed at difference tax rates and unused tax credits can be availed of by the other spouse.

Whether you are a married couple or a single person with more than one source of income, you have certain rate bands and credits available to you with regards to Tax and USC. In order to ensure you do not overpay tax these allowances should be allocated according to the level of income between spouses and/or different sources of income, subject to Revenue limits.

After the year of marriage review, you can opt to be treated as jointly assessed, separately assessed or as a single person. We would advise to get advice on what treatment suits your situation.

So, you want to be jointly assessed?

Joint assessment is the most beneficial for a married couple. Tax Credits, reliefs and rate bands can be allocated between you and you are assessed on your joint incomes. You will need to select the assessable spouse between you, which is usually the higher income earner. All filing of returns and payment of tax due is completed under the assessable spouse.

So, you want to separately assessed?

When you are separately assessed, both you and your partner are taxed as single people. Tax Credits, reliefs and rate bands can still be allocated between you, but you will both complete a single return. If eligible, the following tax credits are divided equally between you both;

  • Married or Civil Partner’s Tax Credit
  • Age Tax Credit
  • Blind Tax Credit
  • Incapacitated Child Tax Credit

So, you want to be assessed as a Single Person?

This is also known as separate treatment, where you and your partner are taxed and complete returns as single people. Tax Credits and standard rate band due as based on a single person. There is no option to transfer unused tax credits, reliefs or rate bands to your spouse or civil partner. Also, if you have children, you cannot claim Home Carer Tax Credit.

Under this treatment, if you do not use all of your personal tax credits, you may end up paying more tax as a couple than you would if jointly or separately assessed.

Need advice or a year of marriage review? Contact us on 01 539 7999 or log onto www.itasaccounting.ie and download our form.

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Flat Rate Expenses

Do you qualify for Flat Rate Expenses in relation to your profession?

Flat Rate Expenses are employment expenses claimable depending on the profession you are in.

To ensure you claim this entitlement if available to you,  check out Revenue’s list of qualifying professions here

It’s worth noting that the following professions have now been added for the years 2019 & 2020;

  • Dietitians
  • Medical Scientists
  • Phlebotomists
  • Social Workers
  • Speech & Language Therapists

The debate on Flat Rate Expenses has recently been in the news, and we have blogged about it! Catch up on all the recent news here

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PAYE Modernisation (P60 Replacement)

PAYE Modernisation

Since the start of 2019, your income and statutory deductions are submitted to Revenue each time you are paid.

Under PAYE Modernisation, employers no longer provide a Form P60. Instead, from January 2020 you will be able to view, download or print an Employment Detail Summary for 2019 under ‘Review your tax 2016−2019’ in the ‘PAYE Services’ on myAccount.

This Summary will contain your income and deductions details for 2019, as reported to Revenue by your employer. The information can be used in the same manner as the Form P60, for example, as proof of your income to a third party. To access your 2019 Summary of Income you must register for Revenue’s myAccount.

Using myAccount

To register for myAccount,

  • go to www.revenue.ie
  • click on ‘Register for myAccount’
  • Click on ‘Start Registration’

You will need your;

  • Personal Public Service Number (PPSN)
  • date of birth
  • phone number (mobile or landline)
  • email address
  • home address

Why not read more on PAYE Modernisation here

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