Brought to you by Taxback.com
Irish tax season is an extremely busy time for many small business owners and self-employed individuals around the country.
The number of people filing a self-assessed tax return has grown by 112,000 people in the last five years alone. What this means is that Revenue will be expecting roughly 750,000 self-assessed tax return submissions this year.
But for most people, tracking down expense receipts and filling out page after page of confusing tax paperwork sounds like the last thing they would ever want to do.
So with the tax deadline fast approaching, (traditionally the deadline is 31 October, but it’s extended to 12 November if you pay and file online) we’ve teamed up with Taxback.com to bring you some handy tax tips to help you survive tax season.
The self-assessed tax deadline is not just for business owners
The first thing you should know is that the tax deadline is not just for business owners. Once you’re considered what’s called a “chargeable” person, you fall into the category of those lucky ducks who are responsible for managing their own tax returns.
To be considered chargeable, you need to be earning an income outside of PAYE. Whether this comes in the form of an Airbnb property or the fact you’re an Instagram influencer sponsored by a brand, it’s all the same, you’ll have to file.
If you’re earning some money on the side, contact Taxback.com to find out whether or not Revenue will consider you to be a ‘chargeable’ person.
Keep track of it all
It may seem like a very obvious piece of advice, but it’s always worth mentioning the importance of keeping a record of your expense receipts and invoices. From cashbooks and invoices to bank statements and mileage records, it’s all worth keeping.
As a rule of thumb, you should make an effort to keep a clear record of the past six years.
This is because you may be selected by Revenue for an Audit at any point over a six year period. Sure, filing away receipts (even photos of the documents are OK) may sound tedious, but you’ll thank yourself if the Taxman comes calling!
Stake your claims
Knowing what you can claim back for expenses can be tricky. Basically, the more essential it is for your business rather than personal use, the better chance you’ll have.
For example, paying the heating bill for your office is a perfectly reasonable expense to claim. On the other hand, that €500 designer jacket you wear to keep warm probably isn’t worth even asking about.
You can very easily overdo it
Every year, countless people end up paying simply too much tax.
The main reason for this?
Most people are unaware of the wide range of credits and reliefs they can claim.
From medical expenses to tuition fees and from the home carer tax credit to flat rate expenses, it’s always wise to do your research and claim every cent you’re entitled to.
Avoid the surcharge
If you file your tax return late, a considerable surcharge will be applied, depending on how much you’ve earned. If you are late with your payment as well, an interest for late payment would be applicable. By filing and paying online, you can at least push the deadline back until 12 November, but you’re still better off to get it done as soon as possible.
On top of that, not everyone realises that a 10% surcharge may apply if your Local Property Tax (LPT) obligations are not met.
Don’t be afraid of the date
Sure you can always file your tax return directly yourself.
But if you’d rather someone else took care of all that tricky tax paperwork for you, you should contact Taxback.com.
An Irish company with offices in Dublin and Kilkenny, Taxback.com offer a convenient Irish tax return service. Their experienced tax team will handle all of the paperwork, ensure you are availing of every relief you’re entitled to and guarantee your compliance with Revenue.
Plus, if you have any questions about your tax obligations, they offer a 24/7 Live Chat service to support you.
Brought to you by Taxback.com
