REVENUE FORM 11 2016 GUIDE – FILE EARLY TO SAVE TAX!
The 2017 tax season has now commenced and all ‘Chargeable Persons’ are required to prepare and submit a 2016 return of income on a Revenue Form 11 or Form 12 to the Revenue Commissioners on or before the 31st October 2017.
It is practice for Revenue to extend the Form 11 deadline until mid-November where a taxpayer both files his tax return online and pays any liability using the Revenue Online Service (ROS). The extended Form 11 deadline for filing the 2016 returns has not been announced yet.
A Chargeable Person is an individual that is self-employed or has Non-PAYE income where the tax liability cannot be collected by reducing their tax credits under the PAYE system.
Company Directors, owning more than 15% of the shareholding in the company, are also obliged to complete a Revenue Form 11 each year even if all their income is PAYE.
Non-PAYE income includes;
- Income from a Trade, Profession or Vocation
- Deposit Interest
- Irish Rental Income
- Income from Fees, Covenants, or Distributions (incl. Dividends)
- Foreign Income
- Exempt Income (for example, when availing of Rent a Room relief)
- Annual Payments (for example, maintenance payments)
Information required for your Revenue Form 11
- Personal Details– Name, Date of Birth and PPS number (self and spouse)
- PAYE Income– You can get this information from your P60 or P45. Details required are Gross Pay, Tax Paid, Gross pay for USC and USC Paid
- Social Welfare Receipts– Total of taxable social welfare amounts received during the year
- Trade/Profession/Vocation– details of accounts required, including total income/sales/receipts and breakdown of total expenses. An accounts extract is required for each trade or profession. Items include, sales, grants and other income, purchases, wages, subcontractor costs, professional fees, repairs, renewals, motor expenses and other expenses.
- Details of losses and capital allowances(carried forward or current)
- Any Rental Incomeand related expenses
- Details of other income as mentioned above
- Tax Credits– you should have received a tax credit certificate from Revenue detailing your personal tax credits. However, you may be entitled to additional tax credits and your tax advisor will advise you on your entitlements. You can check your 2016 tax credits here.
How to complete your Revenue Form 11
Once you have the information required you have the option of completing a Paper Revenue Form 11 and posting to Revenue Commissioners or completing and filing your Revenue Form 11 electronically through ROS (Revenue Online System). You can download the Revenue Form 11 here.
To file electronically, you will need to register for ROS whereupon you will be provided with access codes to log into the system.
Once registered you can view your tax history and other personal information that Revenue Commissioners have on their records. You can also make payments for outstanding liabilities through the ROS system.
What Happens Next?
Once you have filed your tax return, you will receive a notice of assessment (NOA) from the Revenue Commissioners outlining the tax payable (or repayable) for the year.
The NOA will also show a breakdown of your income and tax credits allowable and a calculation of the tax liability.
This process will generally take a couple of days if completed online. It may take longer if submitted by post. It can also take longer to process if you submit close to the 31st October deadline.
Revenue Commissioners can request additional supporting documentation. You are required to keep such documentation and records for six years.
You may at any point be subject to a Revenue Inquiry or Revenue Audit at which time you are advised to seek advice from a professional. You should ensure that your advisor is a Chartered Accountant.
How to pay your Tax Liability
You can pay your tax liability online through ROS using a ROS debit instruction, credit or debit card. Alternatively, you can send a cheque or bank draft directly to Revenue Commissioners, with details of taxes to be paid and your PPS number.
If you are in a refund position, Revenue will send you a cheque or refund the amount into your bank account.
If you have satisfied the Preliminary Tax obligations for the previous year, then the balance of your tax liability is due on 31st October or the extended filing date.
If you have not satisfied your Preliminary Tax obligations then, the balance of your tax will become payable immediately upon filing your return.
What is Preliminary Tax Liability?
Preliminary tax is a payment of income tax on account for the current tax year. Preliminary Tax liability can be based on either 90% of your actual tax liability for the current year or 100% of your tax liability for the previous year.
As people rarely know their liability for the current year, we generally recommend that you pay 100% of the previous year’s liability, if possible, to guarantee no additional surcharges or interest. For example, if your tax liability for 2016 is €7,000, your Preliminary Tax for 2017 will also be €7,000 based on the second option.
Preliminary Tax for the year 2017 is due for payment on 31st October 2017.
Don’t Wait until October – File early and Save Tax!
Cirrus9, Chartered Accountants & Tax Advisors provides an Expert Form 11 and Form 12 Tax Return Service that will save you both time and money. You can prepare and file your tax return early but not pay any tax until November as long as you have paid sufficient preliminary tax last year. This gives you sufficient time to plan a possible pension contribution to reduce your tax bill and plan for the cash flow required. Of course if you are due a refund there is absolutely no reason to delay!
Our Year-End Tax Return Service is structured as follows:
- Cirrus9 registers as your tax agent with Revenue
- We will provide a copy of our 2016 Personal Tax Return Checklist to you for completion
- Upon receipt of your signed & completed checklist we will complete your draft 2016 tax return
- You will meet with our Senior Chartered Accountant to review checklist & draft tax return
- We will calculate the maximum pension contribution you can make to reduce your tax bill
- We will finalise the calculations of your 2016 tax liability & 2017 preliminary tax liability
- We will submit your Revenue Form 11 2016 tax return and payments via ROS
- We will check revenue statement of account
- We will deal with any revenue follow-up correspondence
Please contact Robert Kelly FCA at firstname.lastname@example.org or on 01-5175211 if you would like any further information or have any tax planning or compliance requirements. We are a firm of Chartered Accountants based in Sandyford, Dublin 18 specialising in helping SME’s with all their tax and accounting needs.
Don’t delay, contact us today.