Thursday 20 September 2018

Thousands facing penalties for failing to file tax on time

Taxback.com senior tax manager Barry Flanagan
Taxback.com senior tax manager Barry Flanagan
Charlie Weston

Charlie Weston

Thousands of people could be hit with penalties by Revenue for missing the deadline for filing a tax return.

Experts at Taxback.com urged people who have failed to meet the deadline to act swiftly. Fines of €1,000 will be due on a tax liability of €10,000 for someone who does not pay until the new year.

The deadline for the online filing and paying of tax was yesterday.

More than 500,000 people were due to file tax returns this week, mostly self-employed people, but also PAYE (pay as you earn) taxpayers with extra non-taxed income such as rental or dividend income.

Senior tax manager at Taxback.com Barry Flanagan warned: "If you haven't submitted by now then you will have missed the November 16 deadline and Revenue will penalise you as a result.

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"But how much they penalise you by is still in your hands. Even if you feel you are not in a financial position to meet your tax obligations this year, you should still come forward as soon as possible - you will be in a worse position if you don't."

Taxback.com says that every year hundreds of self-assessed taxpayers fail to meet the deadline for a variety of reasons.

Some people become snowed under by paperwork, and underestimate the time it will take to get organised.

Others take a more "head-in-the-sand" approach because they don't feel financially able to pay what's owed to Revenue.

The tax expert said that a self-assessed taxpayer, with a tax liability of €10,000, who fails to file their return before the November deadline, may now face a potential surcharge of 5pc.

This works out at €500.

If the same taxpayer delays filing their tax return until the new year, it will be more than two months late.

Irish Independent

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