Doing Your Tax Returns

Approximately 580,000 people are required to file a self-assessment tax return, known as Form 11.

The general deadline for submitting self-assessed tax returns is October 31st, although those who submit returns online through the Revenue’s website have an extra two weeks.

Most of people, put off by what they perceive to be a difficult or incredibly dull task, will hire accountants to file their tax returns for them.

Furthermore, instead of using an accountant to learn how to do it the first time, many of them will get into the habit of passing it on to them every year.

According to a Revenue spokeswoman, approximately 70 per cent of self–assessment taxpayers file their returns through an accountant or agent.

If you normally use an accountant to file your return, why not think about doing it yourself to save money? It may be a lot easier than you think.

The size of the form is what puts most people off, but most of the questions do not apply to the vast majority of people and is therefore much easier than it looks.

In addition, the Revenue Online Service (ROS) has made the filing of tax returns a lot easier and quicker. Those who file online also have the distinct advantage of not needing to file until November 17th, instead of October 31st.

ROS was launched in 2000, but today more than half of all self-assessment taxpayers who file are doing so online.

According to the Revenue, well over 300,000 returns were received through its online service before the deadline last year. This represents about 75% of customers who filed their returns in time.

Filing online is also likely to be more accurate than if you filed a paper return because the ROS links directly with the Revenue’s computer system, whereas staff using the paper system will input the data manually, which means errors are more likely.

Most individuals who file a Form 11 would be self-employed, but even if you are a PAYE worker you may still need to file this form if you receive “significant” income from outside your normal employment.

For example, if you earn rent from a buy-to-let property, dividends from a share portfolio, or receive maintenance payments from a spouse.

However, according to the Revenue, if your non-PAYE income is not significant, you may only need to fill in a Form 12.

You may even be able to file the details without having to file a tax return. A separate system from ROS, the Revenue’s “PAYE Anytime” online service was launched in 2006 and is an easy way for PAYE workers to claim their tax credits or declare additional income.

You may need to fill in a Form 12 in order to claim some of the less common tax credits that cannot be claimed online, such as tax credits for contributions to a pension scheme, or a BES scheme, or for property-based incentive credits or for a refund of tuition fees.

However, unlike Form 11, Form 12 cannot be filed online, which means the deadline remains October 31st.

And if you receive a Form 11 in the post from the Revenue, the form must be completed and returned, or filed online through ROS.

If you are planning to file a Form 11 online, remember that you will need to register for ROS beforehand, a three-stage process that can take at least eight working days.

Of course, doing your own tax return may be fine if your tax affairs are simple, but how can you decide when your tax affairs are complicated enough that you risk getting it wrong in doing it yourself?

This may be an issue if you are filing a tax return yourself for the first time, so the common sense advice would be to attempt it yourself and then get an accountant to check it or go over it with you.

You should learn enough in doing this that you won’t need an accountant to hand-hold you in future years.

Another option is to visit a website like paylesstax.ie, which offers online tax calculators, a tutorial and other advice on filing tax returns yourself for a fixed annual subscription fee. A tax return checking service and once-off tax consultations are also available at extra cost.