Making a late tax payment

[Macstuff]

I need to file a tax return for the year 2009 - it's in relation to foreign rental income. The amount is not huge - a few hundred Euro. Can anyone let me know how to approach this? What form do I need? What penalites / interest do I need to add to my actual payment etc?

 

[capnhand]

Hi

If the amount is small and you are a PAYE worker then you will need to complete a Form 12 and pay over the amount of tax due in the October following the year of assessment.

If the income is more then €3k then you will need to registerer for self assessment and complete a Form 11. This return is similarly filed in October in the year following the year of assessment. There may be an additional surcharge of 10% on income tax if the return is deemed to be late. The surcharge is automatically levied. Interest may also be due although this is not automatically levied.

If you commenced the rental income in 2009 then it is not late as the first return you have an extra year to file. However if you commenced previous to this then it will be late. You will also need to file the return for 2010 next October plus preliminary tax for 2011. So there could be potentially three years of income tax to be paid in October based on the facts involved.

So the question is when did you commence the rental income.

Kind Regards

capnhand

 

[Macstuff]

Thanks for your reply Capnhand...

The amt. is €365 and I commenced renting the property in 2009.

A few questions on that please:

1) Do I use the 2009 version of Form 12 for the 2009 amt?
2) How do I indicate to the revenue that this is the first year of rental?
3) Just so that I am clear, you are saying that there won't be any additional penalties / interest for the year 2009 as long as I pay before Oct. 2011?

Thanks again - your responses are much appreciated.

 

[Leaky1]

Hi

If you commenced the rental income in 2009 then it is not late as the first return you have an extra year to file. However if you commenced previous to this then it will be late. You will also need to file the return for 2010 next October plus preliminary tax for 2011.

Capnhand,

just a small correction - the extra year for filing the Tax Return for the 1st year only applies to Case1 or Case2 (trade or profession) income. Rental income is classed as Case5 and you do not get the extra year.

 

[Leaky1]

Thanks for your reply Capnhand...

The amt. is €365 and I commenced renting the property in 2009.

A few questions on that please:

1) Do I use the 2009 version of Form 12 for the 2009 amt?
2) How do I indicate to the revenue that this is the first year of rental?
3) Just so that I am clear, you are saying that there won't be any additional penalties / interest for the year 2009 as long as I pay before Oct. 2011?

Thanks again - your responses are much appreciated.

Hi,

1) you must use the 2009 version of the Form12 when declaring income for 2009.
2) There is no need to indicate that it is the first year.
3) Tax Return for 2009 was due to be filed on 31st Oct 2010, and the tax was also due on that date. However, when you file a Form12 the Revenue will issue you a P21 Balancing Statement. The P21 does not include a late-filing surcharge. The tax due will most likely be collected by reducing your tax credits for next year.

 

[Macstuff]

Thanks Leaky1 and Capnhand - your answers are excellent and I now know exactly where I stand.