Self Assessment – Pay & File for Income Tax Year 2010
Self Assessment – Pay & File for Income Tax Year 2010
On 31 October each year, a self-employed individual/company director, PAYE worker with untaxed non-PAYE income is required to:
- File his/her income tax return for the previous calendar year.
- Pay the balance of tax for the previous calendar year.
- Make a preliminary tax payment for the current calendar year.
In particular, in relation to preliminary tax for 2011, individuals will also have to account for the Universal Social Charge (USC). The self-assessment system applies to individuals with non-PAYE income and to all directors controlling 15% or more of the share capital of a company (even if their entire income is subject to PAYE) and, of course, all self-employed individuals (including partnerships).
Income Tax Penalties
Failure to provide the relevant information may result in a penalty of €950, as well as a surcharge of:-
- 5% of the tax due [subject to a maximum of €12,695] – where return is filed within two months of specified date.
- 10% of the tax due [subject to a maximum of €63,458] – where return is filed more than two months after the specified date.
Tax Relief on Pension Contributions
Tax relief is available on contributions to approved personal pension arrangements. This relief is more generous as you get older. Since 1 January 2011, PRSI and the Universal Social Charge are payable on your pension contributions.
| Age | Amount which Qualifies for Tax Relief |
| Under 30 years | 15% of net relevant earnings |
| 30 to 39 years | 20% |
| 40 to 49 years | 25% |
| 50 to 54 years | 30% |
| 55 to 59 years | 35% |
| 60 and over | 40% |
The maximum amount also applies to people in certain occupations and professions, irrespective of age where there is a limited earnings span. These occupations include professional athletes.
There is a limit on the earnings that may be taken into account. The limit is €115,000 in 2011.
For further assistance contact John J. Sheahan & Co Ltd, Chartered Accountants, Mallow Business Park, Mallow – 022 43200.
Tags: accounts, Income, Income tax penalties, pension contributions, returns, tax, tax relief
