Income Tax 2015 Deadline Checklist

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The income tax return deadline for the tax year 2015 is almost upon us. We would advise that you prepare your return early in order to plan for any liabilities that may arise. 

In order to ensure you are compliant returns must be filed on or before the 31st October 2016.

However, if you intend to pay and file online you can avail of the extended online deadline of the 10th November 2016.

Along with filing your return for 2015 you must also submit the following payments:

1. Balance of Income Tax 2015.

2. Preliminary Income Tax 2016.

The responsibility is on the individual taxpayer to file the return, calculate the liabilities due and pay these liabilities on time.

It is advisable to seek guidance from OSK when preparing your return in order to ensure the correct liabilities are calculated.

Do I have to file a return?

Only individuals in the self-assessment system are obliged to file an income tax return.

Some examples of individuals that would fall into the self-assessment system are:

• All proprietary directors, and the spouse of proprietary directors if joint assessment applies.
• Self-employed individuals.
• Any person receiving income where tax may not be collected from the PAYE system for example rental income.

Further details can be found on Revenue website.

If you fall into a self-assessment category you must inform your local Revenue office when that other source of income commences by completing a form TR1.

What details do you need to send in to OSK to prepare your income tax return?

• Details of your income from all sources for the year ended 31st December 2015,
• Details of any dividends or deposit interest received in 2015,
• Rental income and expenditure details including mortgage interest certificate for the year ended 31st December 2015,
• Receipts in respect of any medical expenses incurred during the year 2015,
• Details of pension contributions paid,
• Details of any new sources of income, i.e. items not included on your last return of income,
• Details of any assets acquired or disposed of in 2015 (Capital Gains Tax),
• Details of any gifts or inheritance in 2015.

Books and records

Individuals are obliged to keep records relating to the return for a period of 6 years after the period to which the information relates.

Late Returns

It is always important to note that if you file your return late you will be subject to a late filing surcharge:

1. Where your 2015 return is submitted after the 31st October 2016 but before the 31st December 2016 the surcharge will be calculated as the lesser of a 5% surcharge of the tax due or €12,695.

2. Where your 2015 return is submitted after the 31st December 2016 the surcharge will be calculated as the lesser of 10% of the tax due or €63,485.

Failure to pay tax liability

Interest on overdue tax is calculated at a rate of 0.0219% (From 01.07.2009) per day or part of a day.

Any underpayment in income tax will result in interest penalties.

The amount of preliminary tax paid must be sufficient and must be paid on time in order to avoid any interest on overdue tax.

If the payment amount is correct, however, is paid late there may still be an exposure to interest.

Imelda Prendergast is Director in OSK Small Business Support and OSK Contracting. Contact OSK today to get your tax return filed before the income tax deadline.

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