Contractors, landlords, taxi drivers, tutors, consultants, small business owners and proprietary directors, are among those required to file an income tax return. Filing income tax returns may be frustrating but it’s important to get them right. Many people find the process confusing and as a result, miss out on tax relief because of simple mistakes. Here are the most common errors made:
Not claiming all the tax credits available. Tax credits are not automatically applied, so you must apply for them yourself. A full list of tax credits are available at www.revenue.ie.
Failing to claim allowable expenses. Even the self-employed can have tax deductible work expenses. For example, if you use your personal car for essential business purposes, you can allow for the business expense. If working from home, you can also claim reasonable amounts for expenses such as heating, light and phone.
Not declaring all income. Not only does your self-employed business income need to be submitted into your income tax return but you also need to include any other income you have earned in the year, e.g. PAYE income, payments from the Department of Social Protection, dividends/deposit interest received and foreign income. Even exempt income must be declared in a tax return. Depending on whether you are married or in a civil partnership or not, the income of your spouse must also be included if you are jointly assessed.
Failing to file on time. Missing the tax return deadline happens very often, this can result in interest and penalties. Additionally, failing to file any income tax return, is one of the largest mistakes for anyone to make.
In order to maximise your tax savings it is worth seeking a professional to file your tax return. This year Revenue has announced an extended filing deadline for online returns of 14th November 2017 while paper returns must be made by 31st October 2017.
Casey Stephenson Accountants complete, calculate and submit your Income Tax Return online with Revenue. We advise our clients on tax savings available to them depending on their particular circumstance ensuring they do not pay more tax than they have to. http://www.caseystephenson.ie/taxation/