Return of Income for 2016 by 31st October 2017
Possibly the most important tax deadline of the year is approaching quickly. The deadline for the return of income for 2016 is due by 31/10/2017. There is an extended filing deadline of 14/11/2017 for users of ROS, but see notes below for more details.
Who has to file a tax return?
- Company Directors
- Anyone with non-PAYE income e.g rental income, dividends.
- Anyone requested by Revenue to file a return.
The filing of a tax return triggers a number of payment deadlines:
- The balance of any tax for 2016 is due for payment; Preliminary Tax for 2016 should’ve been paid by 31/10/2016.
- Preliminary Tax for 2017 is due.
Preliminary Tax (PT) is an advance payment of your expected tax liability for the tax year. The tax payer has a number of options regarding payment; paying 100% of the tax liability for the previous year or 90% of the estimated final liability for the year in question. Please note that any underpayment of PT will attract overdue interest from the due date of 31/10.
The return, where applicable, will also be used to deal with certain Capital Gains Tax (CGT) and Capital Acquisition Tax (CAT) requirements.
- A return of your capital gains (or capital losses) is included as part of your return of income. Note at this stage normally no CGT payment should arise provided the CGT payment deadlines (see next paragraph) have been observed.
CGT is due for payment by the taxpayer on one of two dates depending on when the capital gain is realised. For example, any tax due on gains arising between 1/01/2016 and 30/11/2016 was due for payment by 15/12/2016. CGT due on gains arising in December 2016 should’ve been paid by 31/01/2017.
- CAT arises on gifts and inheritance received between 1/09/2015 and 31/08/2016. A return of such gifts and/or inheritances should be made by 31/10/2017. Please note that any CAT due should be paid with this return.
A note about the ROS extended filing deadline of 14/11/2017. Many people assume they have an extra two weeks to file their return however the devil is in the detail! The extended deadline is referred to by Revenue as a “Pay and File” deadline which means that in order to avail of this new date your return must be both filed on ROS and payment of any tax due must be included. If payment isn’t included then any overdue interest on late payments will run from the original filing date of 31/10/2017.
I hope that helps!