5 Tips for Last Minute Tax Filers

30 Nov 2020

In preparation for the 10th December self-assessed tax deadline, our corporate partners Taxback.com provide some tips for last-minute tax filers. 

With the 10th December self-assessed tax deadline now just around the corner, countless Irish self-employed workers are beginning to prepare their tax returns.

However, the truth is, many workers are unfamiliar with the tax process or don’t know what expenses they can claim as deductions!

This results in thousands of euro worth of tax deductions going unclaimed, as well as potential fines and penalties if tax returns are not completed correctly.

With this in mind, Taxback.com have put a handy guide together that outlines 5 tips that last-minute filers should bear in mind!

  • Make sure to claim expenses!

When working in construction, several different expenses can be claimed as deductions on your tax bill. For example, you’ll be able to claim back on any equipment that is used exclusively for your business.

As well as this, an annual allowance of 12.5% is available on all wear and tear, over a period of up to 8 years! This can be claimed for plant and machinery costs.

You should also be aware that if you are required to travel, for business, you can claim back on fuel and repairs/servicing.

If you are working specifically from a premises, you can claim back on the costs of heating, lighting, telephone, internet, and the insurance costs.

However, you should be aware that you’ll need receipts for these costs…

Which brings us on to our next point!

  • Be sure to keep all documents including expense receipts safe for a period of 6 years!

It’s incredibly important that if you do claim any deductions on your tax return, that you keep a record of any of your receipts.

While it is not initially a requirement to send receipts to Revenue along with your tax return, they will be necessary if you are singled out for audit.

Audits are not uncommon, so it’s best to be safe and make sure you have any documentation which supports every figure stated in your tax return. Also, you will need to keep all relevant receipts in a safe place for up to 6 years, as they can be selected for an audit during that time.

  • Before filing, make sure you’re aware of what documents you need

Okay, this may seem obvious, but you’d be surprised how often mistakes are made by workers who fill out the wrong tax forms.

All self-employed taxpayers will need to be aware of the TR1 form. This form is a registration for Individuals and Sole Traders, Partnerships or Trusts. The form can also be used to register for VAT, Relevant Contracts Tax and/or Employer’s PAYE/PRSI. Once filed, you will receive a ‘Notice of Registration’ which confirms your registration has been completed.

“Chargeable Persons” are required to submit a Form 11 tax return to Revenue on or before the 31 October each year (10 December this year due to the coronavirus pandemic). In short, if any of your gross non-PAYE income is more than €30,000 or any of your net non-PAYE income is more than €5,000 a year, you must submit Form 11.

On the other hand, if your non-PAYE income for the year does not exceed €5,000 and your gross non-PAYE income does not exceed €30,000, you’ll need to file a Form 12.

  • Use 2020 losses to reduce your tax bill!

Did you know that, when filing your self-assessed tax return, you can use 2020 losses against your 2019 profits to reduce your tax bill?

In fact, losses of up to €25,000 from the 2020 tax year can be deducted from 2019 profits.

This is a great way to save cash on your tax return.

  • There’s always help available!

Let’s face it, the burden of trying to file taxes on your own can often be pretty overwhelming!

That’s why if you’d feel more comfortable in the knowledge that you’ll minimise your tax bill and claim every tax relief possible, you should consider enlisting the service of a tax agent, such as Taxback.com.

When you file with Taxback.com, their tax team will handle all of the tricky tax paperwork while you can rest assured you are 100% tax compliant.

Why file with Taxback.com?

  • Simple and stress-free online service – no complicated forms
  • com will manage all of the paperwork – tax compliance guaranteed
  • 24/7 tax advice available from a Personal Tax Advisor, Live Chat agents, email support and more

For more information, visit Taxback.com today

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