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Self Assessment Planning Tips |
The Self Assessment forms may seem
complicated however this should not put you off from actually
completing the return. The form consists of a coresection that
applies to all tax payers, beyond that you only need to complete the
relevant schedules that apply to the specific income you may receive
in the tax year.
When does the Tax Return have to be in?
By completing the form you should work out your own tax liability
which should be paid by the 31 January each year. This relates to
the tax owed in respect of periods 6 April to 5 April for the year
before. For example, for the tax year 6 April 2005 to 5 April 2006
known as the 2005/2006 tax year, the return has to be filed by 31
January 2007.
However if you manage to file your return no
later than 30 September following the end of the tax year, the
Revenue will calculate the amount of tax due before it becomes
payable by 31 January. For the 2005/2006 tax year the date would
have been 30 September 2006 for tax payable on 31 January 2007.
Planning point: Submit your return before the 30 September to ensure
your tax is calculated for you before the due date of 31 January.
Penalties and Charges for Late Returns and Payment of Tax
If you do not file your self assessment return by 31 January
deadline a ?00 fixed penalty is payable. If the return has still not
been filed six months later a further ?00 fixed penalty is levied.
The Revenue can also apply to the Commissioner of Taxes and apply
daily penalties of up to ?0 per day.
If tax is still
outstanding after 31 January interest is chargeable at the
prevailing rate.
In addition to interest, surcharges are
also imposed. These being 5% surcharge on any tax that is unpaid by
28 February, and a further 5% surcharge on any tax still outstanding
by 31 July (being six months after the date tax fell due on 31
January)
Planning point: If you find it difficult to pay
your tax by 31 January, then ensure you pay it no later than 28
February to avoid the 5% surcharge. If you cannot pay the whole
amount then, then try and pay as much tax as possible again before
31 July before the second 5% surcharge.
The Use of
Estimated Figures
Sometimes final figures may not be
available before the filing deadline of 31 January, being ten months
after the end of the tax year, therefore it may be necessary to
estimate these amounts.
A return is not generally rejected
if estimated figures are used, but it is useful to provide adequate
information in the other information boxes of the tax return.
An omission of adequate information regarding these estimates may
cause an enquiry to be opened. A penalty may also be chargeable if
the Revenue believes that final figures could have been obtained
before the filing deadline.
Planning Point: If you do not
know your final figures, i.e. lost paperwork, awaiting further
information, still file your return using estimated figures to avoid
penalties. If the Revenue do not query your return thirteen months
after the filing date it will be difficult for them to go back and
re-look into your estimated figures.
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