Tax return - 'Chargeable person' or not?

D

digweed

Registered User
Messages
23
Hi All,
Just a question about a 'chargeable person':

Scenario:
Regular PAYE employee claiming PAYE tax credit.

Gross deposit interest received for the year: €3300
DIRT has been deducted on all of this @ 33%
Net deposit interest received for the year: €2211

No other non-PAYE income.

Just a question on whether a person is self assessed (Form 11) or PAYE (Form 12).

If 'chargeable', what are the other liabilities (if any) for PRSI/USC etc.?

I'm just trying to make sense of the statement on the form 12 document:

"An individual with a PAYE source of income and with net assessable non-PAYE income (including income subject to DIRT) of €3,174 or
more is regarded as a ‘chargeable person’ for Self-Assessment and must file a Form 11 for that year."

Any help would be great.

Thanks,

digweed.
 
I am in a similar position and Revenue in Limerick and my local Tax office have for the last 2 years, 2012 and 2013 assessments, accepted that I deal with my local Tax office and fill in a form 12S.
 
digweed said:
Hi All,
Just a question about a 'chargeable person':

Scenario:
Regular PAYE employee claiming PAYE tax credit.

Gross deposit interest received for the year: €3300
DIRT has been deducted on all of this @ 33%
Net deposit interest received for the year: €2211

No other non-PAYE income.

Just a question on whether a person is self assessed (Form 11) or PAYE (Form 12).

If 'chargeable', what are the other liabilities (if any) for PRSI/USC etc.?

I'm just trying to make sense of the statement on the form 12 document:

"An individual with a PAYE source of income and with net assessable non-PAYE income (including income subject to DIRT) of €3,174 or
more is regarded as a ‘chargeable person’ for Self-Assessment and must file a Form 11 for that year."

Any help would be great.

Thanks,

digweed.
Click to expand...

What tax year are we talking about? People on PAYE earning more than €3,174 in unearned income are liable to 4% PRSI on the gross amount. It was introduced in the Budget at the end of 2012, but it only kicks in from the current tax year, 2014. (Self-employed people were already paying this PRSI charge). You're not liable for USC on deposit interest.
 
dub_nerd said:
What tax year are we talking about? People on PAYE earning more than €3,174 in unearned income are liable to 4% PRSI on the gross amount. It was introduced in the Budget at the end of 2012, but it only kicks in from the current tax year, 2014. (Self-employed people were already paying this PRSI charge). You're not liable for USC on deposit interest.
Click to expand...

Hi dub_nerd,
I'm talking about the tax year Jan - Dec 2013.

Thanks,

digweed
 
digweed said:
Just a question on whether a person is self assessed (Form 11) or PAYE (Form 12).

If 'chargeable', what are the other liabilities (if any) for PRSI/USC etc.?

I'm just trying to make sense of the statement on the form 12 document:

"An individual with a PAYE source of income and with net assessable non-PAYE income (including income subject to DIRT) of €3,174 or
more is regarded as a ‘chargeable person’ for Self-Assessment and must file a Form 11 for that year."
.
Click to expand...

I think it's net that's causing the issue.

Your gross income from deposits is assessable to tax as this exceeds €3,174 then you are a chargeable person. The fact that your net interest after DIRT is less does not enter the discussion.

If you had rental income then it's your net income that is taxed ie total rent less expenses.

So you could have rent of €10,000 but expenses of €7,000 and so not be a chargeable person.
 
If your only non PAYE income is interest or a foreign pension then Revenue can allow you to use form 12S.
i have done it for 2012 and 2013.
 
Revenue have accepted Form 12s in the past as it did not make any difference to the amount of tax due.

I think that 2014 may be a different story.
 
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