Revenue Form 11: The Ultimate Guide to Filing Your Tax Returns
Who Needs to File a Income Tax Form 11?…and here is how you do it!
Chargeable Persons are required to submit a Form 11 to the Revenue Commissioners on or before the 31st October each year.
If filed electronically, this deadline is usually extended by two weeks. The actual extended deadline each year is provided by Revenue Commissioners well in advance of the deadline. For example, for the 2014 income tax returns, the extended deadline was Thursday 12th November 2015.
A Chargeable Person is an individual who has non-PAYE gross income in excess of €50,000 or assessable non-PAYE income of €3,174 or more. With effect from 01/01/2016, the limit is increased to €5,000.
Company Directors, owning more than 15% of the shareholding in the company, are also required to complete a Form 11 each year.
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)
Note: There are simplified versions of the Form 11 such as the Form 11E and Form 11S which are not as detailed as the full Form 11.
Information required for your Tax Return
- 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 Income and related expenses (see landlords’ tax section)
- 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. On the Revenue website there is a detailed chart of tax credits.
- A new tax credit has been introduced from 01/01/2016 in the amount of €550 and will apply to a person’s earned income (other than income that qualifies for the existing PAYE Credit)
How to complete your Form 11
Once you have the information required you have the option of completing a Paper form 11 and posting to Revenue Commissioners or completing and filing your Form 11 electronically through ROS (Revenue Online System).
To file electronically, you will need to register for ROS through revenue.ie 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 system.
You are not required to provide supporting documentation unless specifically requested by Revenue Commissioners.
If you are unsure about the accuracy of your tax return or you may wish to seek professional advice on completing the form to ensure you are utilising tax credits and tax bands and relief’s to the optimum level.
How your income tax liability (or refund) is calculated (Updated based on current rates)
1. Calculate your Total Taxable Income (Y)
PAYE income + Net Rental Income + Net Self employed Income + Other Income
2. Calculate Tax Payable (T)
Lower of Y or standard cut off rate x 20% plus Balance x 40%
(Standard Cut off rate is €33,800 for single, up to €67,600 for married with 2 incomes, or €42,800 for married person with one income.)
3. Deduct your Total Tax Credits (T-C)
T less tax credits
For example: Standard Tax credits would be €1,650 (Personal Credit) plus €1,650 (PAYE Credit).
4. Calculate and add USC and PRSI (U+P)
U* = €12,012 x1% plus €6,656 x3% plus up to the next €51,376 x 5.5% and the balance of gross Income for USC x 8%
P = Total Taxable income x 4%
*Cut off rates for USC will be allowable for both spouses if applicable
5. Deduct Tax and USC already paid
Having calculated your Income Tax liability, deduct any tax already paid including taxes paid through the PAYE system (details on P60).
>> See more on Personal Tax, Credits and Reliefs on our Personal Tax page
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 adviser is a qualified accountant Chartered Tax Adviser.
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 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 do not know their liability for the current year, it is generally recommended to pay 100% of the previous years liability, if possible, to guarantee no additional surcharges or interest. For example, if your tax liability for 2015 is €5,000, your Preliminary Tax for 2016 will also be €5,000 based on the second option.
Preliminary Tax for the previous tax year 2015 is due for payment on 31st October in the following year.
What Liam Burns & Co Can do for You
Liam Burns & Co is a specialist tax and accountancy practice offering professional services and advice for individuals required to submit a Form 11.
We guarantee tax efficient returns and ensure you are fully compliant.
All Ireland football champion and businessman Eamonn Fennell recommends Liam Burns & Co
I needed two years’ tax returns to be completed and both were fully completed within days of providing the information.
Fees were very reasonable and I was completely satisfied with the expert service. I would highly recommend Liam Burns & Co for accounts and income tax.
– Eamon Fennell
Comprehensive Service (From €400 ex Vat)
- Preparation of Accounts and Tax return
- Submission of same to Revenue Commissioners
- Review of Notice of Assessment
- Advice in relation to tax credits, and other tax relief’s ensuring you maximise credits and reliefs.
Simply complete the form below and we will process the information and submit your completed tax return online on your behalf.
Review Service (From €250 ex Vat)
Should you wish to prepare your own tax return, we provide a review service that provides assurance that your returns are correct and tax efficient.
Note: Fees may vary depending on the volume and organisation of the information provided. Fees are tax deductible.
Get professional help to file your Form 11
Liam Burns & Co will also ensure you are utilising any relevant reliefs and credits to minimise your tax liability. Call (01)5677380 or enquire here.