Tax deadline 31.10.2011

Under the self-assessment “pay and file” system, if you are:

• self-employed,
• an owner-director of a private company,
• in receipt of rental income from property in Ireland or abroad, or
• in receipt of investment income,

you must file a tax return in respect of income and capital gains arising in 2010, on or before 31.10.2011.

You must also pay any outstanding income tax for 2010 (over and above the preliminary tax payment you should have made before 31.10.2009) on or before 31.10.2011.

If you file a return electronically, using the Revenue Online System (ROS), your pay and file deadline is extended to 15.11.2011. As registered tax agents with ROS, we can submit your tax return through ROS, provided you have signed the appropriate agent authorisation form and ROS debit form.

If your return is filed late, but before 31.12.2011, you are liable to a surcharge of 5% of the tax liability (this may not exceed €12,695). If the return is filed after 31.12.2011, the surcharge is 10%(this may not exceed €63,485).

If your tax is paid late, you are liable to interest at a daily rate of 0.0219% (8% p.a.) from the preliminary tax due date (31.10.2009). Interest is also payable on the surcharge.

If you would like us to file your tax return, we need the following information:

YOUR RESIDENCE STATUS

If you are resident in the Republic of Ireland (ROI), you are subject to Irish tax on your worldwide income. You are “resident” if you have spent:

• 183 or more days in ROI in 2010, or
• 280 or more days in ROI in 2009 and 2010 combined.

You are regarded as “present” in ROI for a day if you were present at any time during that day.

You are “ordinarily resident” in ROI for 2009 if you were resident in 2007, 2008 and 2009.

If you are not resident, you are subject to Irish tax on Irish source income (for example, income from Irish property). If you are not resident but remain ordinarily resident, you are not subject to Irish tax on income from a trade or employment carried on abroad. You are liable to Irish tax in foreign investment income in excess of €3,810 in the year.

YOUR DOMICILE STATUS

If you are foreign-domiciled, for example, a foreign national living in ROI, you are only taxed on foreign income and gains to the extent that they are remitted into ROI.

CHANGE IN PERSONAL CIRCUMSTANCES

INCOME FROM EMPLOYMENT OR PENSION:

We need:

• Copy of P60 (P45 if you ceased employment) and statement of income levy paid,
• details of any benefits provided by your employer, for example, company car, preferential loan, shares or share options granted by your employer,
• details additional voluntary contributions made by you to a pension scheme,
• details of any termination payment received by you as compensation for the loss of your employment – this may give rise to a refund of tax for 2007, 2008, and 2009, under “top-slicing relief.”

INCOME FROM SELF-EMPLOYMENT

We need:

• Copy of the profit and loss account and balance sheet for your accounts year ended in 2010,
• details of any new assets acquired by the business – plant and machinery, for example office equipment and fixtures and fittings,
• details of any disposals of business assets.

INCOME FROM INVESTMENTS AND PROPERTY

We need:

• Details of dividends received from Irish or foreign companies, together with the dividend vouchers showing any tax deducted at source.
• Details of any interest received “gross”, i.e., without deduction of tax.
• Details of any interest received net of withholding tax. Deposit Interest Retention Tax (DIRT) satisfies your liability to tax, but you will be liable for levies on interest which has been subject to DIRT.
• Details of any royalties you have received from intellectual property – copyrights, patents etc, stating the source of the income together with any accompanying documentation.
• Details of rent received from Irish property. You should state the gross rent for each property, and provide documents to verify the deductions appropriate to that property – interest on money borrowed to purchase, improve or repair the property, maintenance costs, insurance costs. Since 06.04.2009, only 75% of interest is allowable. However 100% interest relief is available for (95/365) of the total interest paid in the year, being the amount appropriate to 1 January to 5 April.
• Details of fixtures and fitting (for example, cookers, furniture) purchased for each property. These are written off at 12.5% per annum.
• Details of any “section 23″ relief available against rental income.
• The same information should be provided in respect of foreign property, together with receipts for any foreign tax paid on the income from that property.

TAX DEDUCTIONS

We need:

• Receipts for any unreimbursed medical and dental expenses incurred by you or your family – note you can also claim medical expenses in respect of a dependent relative, for example, nursing home expenses of an elderly parent,
• details of any Business Expansion Scheme (BES) investments, or Film investments, made by you,
• details of any gifts made to approved charities or amateur sports bodies,
• details of covenants, if any made by you with an elderly relative, or an incapacitated individual.

TAX CREDITS

Your basic personal tax credit will depend on your personal circumstances (see above), but you may be due additional credits in respect of:

• an incapacitated child,
• home loan interest – although this is now given at source, Revenue cut off the deduction at source for many taxpayers last year, and it may be the case that you are entitled to relief,
• rent paid for private residence – if you are aged 55 or over, the credit is €1,600 if you are married or widowed, €800 if you are single. If you are aged under 55, the credit is €800 for married/widowed persons, and €400 for single persons,
• local authority services charges,
• college fees paid – these are in respect of private colleges, evening courses and post-graduate courses – the maximum credit is €1,000.

CAPITAL GAINS

Your tax return must contain details of any disposals of assets (for example, shares, property) made by you in 2010 and you must pay any balance of tax owing from 2010.

It may be the case that you have unused losses which can be carried forward from previous years – for example losses on Eircom shares, or losses on shares in Anglo-Irish Bank as a result of the shares having become worthless. Such losses may reduce the capital gains tax charge in 2010.

The first €1,270 of chargeable gains is exempt.