Who files a self-assessment tax return?
- The self employed, proprietary directors (those who own more than 15% of a company) and people with non-PAYE income are required to file self assessment tax returns under the Pay and File system with Revenue
- Employees and Directors in occupational pension schemes can also reduce their 2017 tax bill if they pay an AVC single premium on or before 21st October 2018 and file a return by 31st October 2018
How to avoid interest & surcharges
By 31st October/14th November 2018 you must:
– File a 2017 Income Tax Return
– Pay any balance of income tax outstanding for 2017
– Pay preliminary income tax for 2018
Tax Saving Opportunities – For the Self Employed
If you are self employed, you must calculate your tax liability and make a payment by 31st October 2018 in respect of your:
- Final Tax Assessment for 2017
- Preliminary Tax for 2018
- You can reduce your 2017 Final Tax Liability and your 2018 Preliminary Tax liability by making contributions to a Personal Pension Plan or to a PRSA plan by 31st October 2018 (or 14 November 2018 for ROS users) and also by these respective dates electing to backdate the tax relief to 2017.
- Your pension contributions are subject to the age-related limits shown below:
|Age Band||% of Net Relevant
|60 and over||40%|
|Up to age 29||15%|
- John is self employed
- Aged 45 years
- Net Relevant earnings for 2017 were €80,000.
- He has paid €18,000 Preliminary Tax in 2017
- Total tax bill for 2017 is €25,000.
- This leaves him owing €7000 for 2017.
- He does not currently pay pension contributions.
- The two scenarios below show just how a lump sum pension contribution can save John lots of money!
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