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The self employed tax filing deadline is 31 October, but most taxpayers avail of the extension to file electronically on Revenue on Line (ROS) and therefore have until 16 November to pay and file using ROS.  To get the extension you have to “pay” on 16 November and many taxpayers are finding this more difficult than in previous years.   ACCA (Association of Chartered Certified Accountants) is warning the self employed that if they need to put in place an instalment arrangement to pay their tax this year, that they need to have filed by 31 October and not 16 November. 

Aidan Clifford, ACCA’s Advisory Services Manager, said “The key is to do your income tax return early and agree an instalment plan early.  Most accountants in practice will be very busy in the weeks coming up to the taxation filing deadline and negotiating an instalment plan with Revenue is time consuming.  If you need an instalment plan the self employed need to get their books and records into their accountant as early as possible”

Self employed income tax is paid all in one lump sum: on 31 October if paper filing; or 16 November if electronically filing.  The amount of taxation payable, even for a modest business, is quite substantial and many self employed taxpayers borrowed the money from a bank and paid the loan off over the next year.  Many businesses are reporting that access to borrowing is no longer available and the tax still has to be paid.  Revenue are accepting instalment plans for taxpayers who are unable to pay, but the instalment plan has to be agreed and in place prior to 31 October and not the traditional 16 November date.  The first time a taxpayer is genuinely unable to pay a taxation bill, be that income tax, PAYE or VAT, Revenue are generally accepting instalment plans, usually over 12 months.  Revenue attitude to second or subsequent non payment of tax, or default on an instalment plan, is much less benign.  Simply not paying or not filing a taxation return or fraudulently completing a tax return is looked on very unfavourably by Revenue. 

For further information, please contact:

Aidan Clifford, Advisory Services Manager, ACCA Ireland - 087 2470205
Barbara Elliott, Touchstone Communications – 087 2933580

Notes to Editors
1. ACCA is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management. We have 493,500 students and members in 170 countries worldwide. ACCA Ireland has 20,000 students and members.
2. ACCA has worked with governments, national organisations and development agencies in emerging economies- for over 20 years- promoting the accounting profession, to create value for the communities, businesses and individuals it serves.
3. ACCA believes that globalisation of business means that one set of reporting standards is essential. We favour the principles-based IFRS.
4. ACCA understands the real issues facing small businesses as 63,000 of our members work in SMEs or small partnerships worldwide.

Journalist briefing
The taxation rules in respect of property letting are particularly complex.  Availing of any of the tax incentives for the construction of student accommodation in particular, has a number of pitfalls.  Many landlords do not realise that even though they may have losses for income taxation purposes, they may still have to pay PRSI and income levies.  Also in an era of negative equity, if they sell a tax incentive property they may end up with a very large income tax bill when the tax incentive is clawed back.  Even though the investor has a capital gains tax (CGT)  loss on the sale of the property the CGT loss can not be offset against any income tax payable.  If an investor has a number of student properties, (say an apartment block with 5 or 6 students apartments), if some of the apartments are vacant then not all of the expenses for the whole block may be allowable as a tax deduction.

The second home tax is also payable at the rate of €200 per property and interest paid on a mortgage is only 75% allowed as a deduction against the rent received.   If the property is not registered with the Private Residential Tenancy Board (PRTB) then none of the mortgage interest is allowed as an offset against the rent.  The ESB and PRTB have said that they will be sharing information with Revenue on rented and second homes and Revenue will therefore be in a position to identify rental property that has not been registered with the PRTB or property where no return of rental income was made. 

Revenue have a number of booklets on rental income
www.revenue.ie/en/tax/it/leaflets/it70.html#section5

Student accommodation booklet
www.revenue.ie/en/practitioner/tech-guide/stud_accom.pdf

Section 23 Relief booklet
www.revenue.ie/en/tax/it/leaflets/s23.pdf