What is the Income Tax deadline 2023?
Key dates for your diary:
Paper-based Income Tax Return – 31st October 2023
Electronic filing of Income Tax Return – 15th November 2023
On or before these dates, you should:
- Pay your preliminary tax
- File your self-assessment Income Tax Return
- Pay your Income Tax balance
This guide’ll explore what you should do before the 2023 Income Tax return deadline. If you’re unsure whether you should file Income Tax returns or have questions about filing your Form 11 Income Tax Return 2023, feel free to contact our Client Services Team – we’re here to help.
Add the key dates to your calendar
Make sure you’re registered for Revenue's Online System
Gather your information and financial records
Check your bank balance
Seek advice from a professional, like Accountant Online
01. Add the key tax filing deadline dates to your calendar
As a business owner, it is important that you are always aware of your compiance obligations to Revenue and the Companies Registration Office (CRO). Even if you outsource your accounting and financial requirements, you are still ultimately responsible for the timely submission of your business’ tax returns and you are the one who faces penalties if the tax returns are late.
Our top tip:
- Use a cloud calendar and set up recurring reminders for your upcoming tax deadlines so you are always reminded ahead of the deadline.
When do I need to submit my tax return?
The deadline for submitting your tax return in Ireland varies based on your chosen filing method. If you choose to file online through the Revenue Online Service (ROS), the typical deadline is mid-November. However, if you prefer to file using the paper form, the deadline is generally the 31st of October.
It’s essential to be aware of your preferred filing method and its associated deadline to ensure you meet the requirements and avoid any late filing penalties. Staying informed about these deadlines is key to a smooth tax filing process.
02. Make sure you are registered for Revenue's Online System
Revenue’s Online Service (ROS) is used to view and manage your business taxes.
When you register for ROS, you need to make sure that you download and save your secure ROS digital certificate and give it a name and a password. You need access to this every time you log on to ROS.
People who are registered for ROS can submit their tax returns electronically and can avail of a tax deadline extension. As a reminder, if you file with paper, the deadline is the 31st of October. If you pay and file on ROS, the deadline is extended until November 2023.
Our top tip:
- Always check that you can log on to ROS successfully and report any issues to Revenue.
- If you are a returning user of ROS, you may need to renew your digital certificate, which can be an unexpected delay in submitting your tax return.
- If you are a new user, you must apply for your RAN, which could take up to 5 working days.
- If you are a new user with a MyAccount, you may be able to register for ROS more quickly.
03. Gather your information and financial records
When you are completing tax returns, you need to make sure you have all the necessary information at hand.
Types of information required to complete our Form 11 Tax Return include:
- Personal details
- Details of PAYE, pension income, income made from a Trade/Profession/Vocation, rental income
- Social Welfare information
- Details of capital allowances and/or losses
- Details of expenses, such as health expenses
These records are usually collected during the bookkeeping process and it is important that it is done accurately so you pay the correct amount of tax at the end of the year.
Our top tip:
04. Check your bank balance
Preliminary Tax is an advanced payment for next year’s tax and it is required to pay at the same time you file your Income Tax Return. This means you need to pay your tax liability due plus Preliminary Tax liability.
Using 2022as an example, PT is calculated based on 3 options:
- 90% of tax liability for 2023
- 100% of the tax due for 2022
- 105% of the tax due for 2021
Since Income Tax returns are due for the previous year (i.e. 2023 income tax return is for income earned in 2022), you may not have saved any cash for your tax bill.
If you know you will have difficulty paying your tax liability upfront, you should contact Revenue immediately. You may be able to apply for a Phased Payment Arrangement.
What is the penalty for filing taxes late in Ireland?
- Late filing surcharge: Late filing incurs a penalty, with a 5% surcharge on total liability (up to €12,695) if filed within two months of the deadline, and 10% (up to €63,485) if filed more than two months late.
- Increased audit risk: Late filing raises the chance of a Revenue audit, which can be stressful and may require a tax advisor. Non-compliance can lead to further penalties.
- Interest on late payments: Unpaid tax liabilities accrue interest at a rate of 0.0274% per day. Interest is also applied when setting up a payment plan.
- Surcharges for directors: Company directors must file on time; late filing incurs surcharges. Surcharges apply to all of the director’s income, not just company income.
- Public listing by Revenue: Non-compliance can lead to public listing by Revenue, potentially harming reputation and future credit prospects.
05. Seek advice from a professional
Around the tax deadline period, there are a few options on how you can complete this submission: do it yourself, get a family member or friend to do it, or outsource it to a professional. As long as your tax return is filed correctly, it may not matter much how it gets done but you may have questions that will help you to create a better business.
We are here to provide some guidance on what you should be asking yourself around the tax deadline period and where you may need to seek advice from a professional.
What to consider around tax deadline
01. Is it time to change from Sole Trader to a Limited Company?
If you’re earning more than you need as a salary, then you may be able to save on your tax liability by changing into a company. There are also more options for growth as a company and more ways to pay yourself.
02. Should you invest in accounting software?
If you have lots of receipts and bills to go through at the end of the year, you could subscribe to online accounting software to save you time on bookkeeping. It also helps you manage your cash flow easier, so it gives you more control over your finances.
03. Do you need an accountant?
Are your accounting obligations becoming too complicated and time-consuming? Do you want to delegate the responsibility to a professional online accounting firm so you have more time to focus on running your business?
04. Will you take on staff?
If your business is growing, you may want to hire your first employee to take care of some of the duties. When you take on staff, you need to register as an employer with Revenue. You also need to operate a payroll system and ensure you’re filing the correct PAYE returns.
What to do next?
Preparing for your tax return deadline can be a source of stress for some businesses but if managed correctly, it can go by in a flash. Until next year.
In order to prepare; we recommend you follow these 3 steps:
- Gather together all of your records for your business, sales and purchase invoices, bank statements, chequebooks, cash records, etc well in advance of the deadline. Ideally, use online accounting software to record your documents.
- Bring them to your accountant as soon as you can to allow him/her maximum time to prepare your accounts and discuss your tax liability with you. When you set up accounting software, you can share your account with your accountant so they have easy access.
- If you think that your liability will be substantial, talk to your accountant about ways to minimise your bill or set up a phased payment arrangement with Revenue.
Larissa is a Fellow Chartered Accountant (FCA) and is the CEO of Accountant Online, which specialises in company formation, company secretarial, annual accounting services, bookkeeping, tax, and payroll services for micro and small companies in Ireland and the UK.