Income Tax Deadline 2016 Checklist

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The income tax return deadline for the tax year 2016 is fast approaching.  In order to ensure you are compliant returns must be filed on or before the 31st October 2017.

However, taxpayers who both file their return of income and make the appropriate payment though ROS for:

1. Income tax balance due for 2016, and
2. Preliminary income tax due for 2017,

can avail of an extension to the normal filing date of 31st October 2017 and instead file by 14th November 2017.

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.

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 2016,
• Details of any dividends or deposit interest received in 2016,
• Rental income and expenditure details including mortgage interest certificate for the year ended 31st December 2016,
• Receipts in respect of any medical expenses incurred during the year 2016,
• Details of pension contributions paid,
• Details of any assets acquired or disposed of in 2016 (Capital Gains Tax),
• Details of any gifts or inheritance in 2016.

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.

What reliefs are available against your income tax liability?

There are a number of deductions / reliefs you can claim against your income tax liability. These include, but are not limited to, the following –

• Tax relief at the standard rate (20% in 2016) for medical expenses paid is available. 
• A tax credit of €490 is available in 2016 where a taxpayer or his / her spouse / civil partner is at least 65 years of age during the year of assessment.
• Tax relief at the standard rate (20% in 2016) is available in respect of certain third-level tuition fees paid to approved colleges.

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 2016 return is submitted after the 31st October 2017 but before 31st December 2017 the surcharge will be calculated as the lesser of a 5% surcharge of the tax due or €12,695.

2. Where your 2016 return is submitted after the 31st December 2017 the surcharge will be calculated as the lesser of 10% of the tax due or €63,485.

The surcharge is calculated on the full tax payable for the year and does not take account of any payments on account.

The surcharge for a proprietary director is calculated before deduction of PAYE paid during the year.  

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, it is paid late there may still be an exposure to interest.

Contact OSK Tax Consultant Róisín McDaid today to get your tax return filed before the income tax deadline.

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