More than 300,000 self-employed people and those with non-PAYE income are due to file their tax returns by the end of this month. Last year 73,000 people missed the tax return deadline and they had to pay for their tardiness.
The surcharge for late filing is 5 per cent of the tax bill or £10,000, whichever is greater, up to March 31st and 10 per cent or £50,000 after that. The most common problem the Revenue Commissioners have to deal with is inadequate information.
Grasp the nettle: If you haven't filed your return by now, you are probably a procrastinator by nature but don't make it any worse by letting it drag on any further.
Keep good records: To fill in the return accurately you will need to refer to all the relevant documents and this will be easier if you have a filing system.
Those who haven't kept proper records during the year will have to find and sort Revenue documents, income documents and of course receipts before they can make an attempt at the return.
Forms, what forms?: Ensure you have the correct forms to send in with the return. This may involve a call to your local Inspector of Taxes. Employed people will need at least their P60 and tax-free allowance certificate. Don't forget dividend vouchers and interest certificates where applicable.
Tax relief: It's a crying shame to miss out on any tax relief or allowances. Apart from relief on mortgage, pension and health insurance, non-routine medical expenses are also allowable.
To claim for medical or dental expenses ask for the Med 1 or Med 2 form from you local tax office. The self-employed can also offset any legitimate expenses.
If you are claiming relief under any heading, it should be vouched to avoid follow-up.
Pounds and pence: According to the Revenue Commissioners you can round up for allowances and down for tax.
Signing off: Don't forget to sign the form. You'd be surprised how many people overlook this.
If your RSI number is not preprinted on the form, make sure you add it in.
See the Revenue Commissioners website www.revenue.ie or contact your local tax office for more information.
