Should I be Income Tax Registered?
You should register for Income Tax if;
- You are self-employed
- In receipt of additional income outside of PAYE, exceeding €5,000
What is Preliminary Tax and do I have to pay it?
Preliminary Tax is an estimate of the income tax due for a tax year. This is paid in advance of filing your income tax return for that year. This is due by 31st October of that tax year.
Preliminary Tax due is;
- 90% of the tax due for that year
- 100% of the tax due for the previous tax year
- 105% of the tax due for the tax year preceding the previous year but only applicable if currently paying by direct debit.
For example, Preliminary Tax due for the year 2020 is due to be paid by 31st October 2020. This can be submitted when filing your 2019 Income Tax Return. Underpayment or late payments of Preliminary Tax may be charged interest for each day past the deadline.
Pay and File System – how does this work?
By the 31st October each year, you must;
- Pay your Preliminary Tax for that year i.e 2020
- File your Tax Return for the previous year i.e 2019
- Pay any balance of tax due for the previous year i.e 2019
The pay and file deadline is extended into November for returns filed online through Revenue Online Services (ROS). Late filing of tax returns will incur surcharges of 5% of tax due within 2 months of filing or 10% of tax due thereafter.