Full Self Assessment FAQs

Transcription

1 Full Self Assessment FAQs 1 What is self assessment? Self assessment is where you make your own assessment to income tax, corporation tax, or capital gains tax as appropriate. In previous years Revenue would assess you on the basis of the information you entered in your return of income. From 2013 you must self asses when submitting your return of income. 2 From what year does it apply? Full self assessment applies for the year 2013, i.e. income tax for the year 2013, corporation tax where the accounting period commences on or after 1 January 2013, and capital gains tax for the year How do I make a self assessment? You make a self assessment when you file your annual tax return by completing the self assessment panel in that form. You must complete this panel in full and make the declaration at the end of the panel before submitting the form to Revenue. 4 What is included in a self assessment? Each self assessment must include: (i) The amount of the income, profits or gains for the period (ii) The amout of tax chargeable for the period (iii) The amount of tax payable for the period (iv) The amount of any late filing surcharge (v) The balance of tax payable after taking into account any tax paid direct to the Collector General. In addition to these amounts, an income tax self assessment should include a breakdown of the amount of tax chargeable showing the amount of income tax, USC, and PRSI due. 5 Do I still file a tax return? Yes; you still file your annual return of income (Form 11 or CT1), which will include, as part of the form, your self assessment. 6 How is the tax return different? There are new sections in the Form 11 and Form CT1 to allow you to make your income tax, corporation tax or capital gains tax self assessment as appropriate 7 Can I opt out of self assessment? No. All chargeable persons must self assess when making their tax return apart from individuals who file a paper return on or before the 31 August in the year following the year of assessment (31 August 2014 for the year 2013). Those individuals can opt to file their return without making a self assessment, and on receipt of that return Revenue will make their self assessment for them. your 2014 paper Form 11 on or before the 30 September 2015 you do not have to complete the self assessment panel 8 Can I appeal a self assessment? No appeal can be made against your self assessment or an amended self assessment made by you. Page 1 of 6

2 9 Can Revenue dispute my self assessment? Yes; if Revenue is not satisfied with the adequacy of a return they can amend your self assessment. You can appeal an assessment or amended assessment raised by Revenue. The conditions which must be satisfied before an appeal can be made are shown on the notice of assessment issued by Revenue. 10 Can I file a return on ROS and not make a self assessment? If you file your return electronically using ROS you must self assess; ROS will not allow the submission of a return where the self assessment is not made. 11. Can I file a paper return and not make a self assessment? It is possible to file a paper return of income without making a self assessment. But if you do, you may be liable to a penalty of 250. However, where a paper Form 11 is filed on or before the 31 August in the year following the year of assessment, no penalty will be incurred. your 2014 paper Form 11 on or before the 30 September 2015 and do not complete the self assessment panel, no penalty will be incurred. 12 Why are there two columns in the ROS form 11? What part of this form is my self assessment? The ROS Form 11 (and CT1) has two columns A and B. Column A is Revenue s calculation of the relevant figures in your self assessment. Column B is your self assessment. If you agree with Revenue s figures you can indicate agreement and transfer the figures over to column B. If you do not agree with Revenue s figures you must give a reason why you do not agree with them. In this case you must enter your own figures in column B. 13 Can I receive help calculating how much tax I owe? The ROS Form 11 (and CT1) will provide a calculation of your tax liability. You can agree with these figures to make your self assessment. If you are not filing through ROS, an individual can file their Form 11 on or before the 31 August in the year following the year of assessment without completing the self assessment panel. Revenue will make the self assessment on your behalf. your 2014 paper Form 11 on or before that date you do not have to complete the self assessment panel. If you file after the 30 September, you should file your return using ROS, otherwise you will have to do your own calculation. 14 Can I amend my self assessment if I realise I made a mistake? Yes. The grounds for amending the assessment must be clearly stated, e.g. the amendment is necessary to correct either an error or mistake in the original return 15 Can I send in a letter asking for my assessment to be amended or must I do it myself.? If you filed your return electronically via ROS you must amend the return through ROS. However, if you are a paper filer you can contact your local district or agent and request an amendment, but you must state why it is necessary to amend your return i.e. the amendment is necessary to correct either an error or mistake in the original return Page 2 of 6

3 16 Can I amend returns via ROS? Yes, however it is only possible to amend a Form 11 or a Form CT1 using ROS on-line. There is no off-line facility to amend returns. It is not possible to amend either a Form 1 or a Form 1(Firms) through ROS. However, in certain circumstances it will not be possible to amend a return on ROS even where the original return was filed via ROS, and these include: the original return must have been filed through ROS and only the person who filed the original return will be able to amend the return; that is, the same ROS Digital Certificate must be used. it is not possible to amend a return between the time it has been submitted and the time an acknowledgement of a customer s self assessment (or notice of assessment for back years) is sent back to the customer s ROS inbox usually the following day. in certain circumstances Revenue will prevent the amendment of a case through ROS, for example where a Revenue audit was carried out on the year. In addition, although the return can be amended in ROS, it will not be possible to amend certain fields in the return, e.g. it is not possible to amend either the civil status (e.g. Married, Divorced, Widowed, in a civil partnership, etc.), or the basis of assessment (e.g. Joint assessment, Single treatment, etc.) in the form 11. it is not possible to claim certain reliefs after the expiry of the time limit; e.g. it is not possible to claim relief for trade losses under section 381 more than two years after the end of the year of assessment. it is not possible to amend any entry in the capital gains tax panel in the Form 11. it is not possible to amend the accounting period start and end dates in the Form CT1. 17 If I file the return late must I include a surcharge? Yes. The late filing surcharge forms part of your self assessment. If you are filing the return late you must include the correct amount of the surcharge 5% where the return is filed within two months of the return filing date (subject to a maximum of 12,695), 10% where it is filed more than two months late (subject to a maximum of 63,485). 18 What happens if I do not self assess? If you do not self assess, you may be liable to a penalty of 250, unless you are an individual and file your paper return on or before the 31 August after the end of the year assessment. your 2014 paper Form 11 on or before that date you will not be liable to this penalty where you have not self assessed. 19 ROS won t let me file my return - it is saying that there are errors in my self assessment.? When you attempt to upload the Form 11/CT1, ROS will recalculate the liability (and any late filing surcharge due). If the new liability or surcharge amounts are different to the amounts previously calculated by Revenue (i.e. the figures in Column A of the self assessment), the upload of the return will fail and you will be presented with a message advising you to review your self assessment. This is to ensure that you do not amend your return before submitting it, but inadvertently neglect to amend your self assessment. Page 3 of 6

4 20 If I make a disposal in the year, must I self assess for that too? Yes. Full self assessment also applies to capital gains tax. If you do not self assess you may be liable to a penalty of However, if you did not dispose of any chargeable assets in the year you do not have to complete the CGT self assessment panel. 21 What happens if I agree with Revenue s calculation and it turns out to be wrong am I liable to interest and penalties.? No. In the event that the indicative tax calculation provided by Revenue is incorrect and you have made a self assessment in accordance with that calculation (and have paid the tax in accordance with that calculation): a) Any additional tax due by reason of the indicative tax calculation being incorrect shall be due and payable not later than one month after the date of the amendment of the self assessment, and b) Interest and penalties will not apply to the extent that you have included a self assessment that was in accordance with Revenue s calculation. However, you must retain either an electronic or printed copy of the indicative tax calculation. 22 Is the acknowledgement letter sufficient for proof or income, or can I get a notice of assessment if I request one? Where you self assess Revenue will acknowledge receipt of your self assessment, but will not issue a notice of assessment. If you require proof of income for third parties, this acknowledgement of your self assessment, supported by your calculation of the liability (or the ROS calculation where you filed through ROS and agreed with Revenue s calculation) may be of use. Note: Student Universal Support Ireland (SUSI) should not require copies of notices of assessment as procedures are in place which allows for the automatic exchange of relevant information between Revenue and this body. 23 Do I have to answer all questions in the expression of doubt section of the return? If you have a genuine doubt about the correct application of tax law to any item in your return you can indicate that doubt when filing your return. You do this by ticking the expression of doubt box and completing the Expression of Doubt section in full. All questions within this section must be completed. 24 When making my self assessment it asks for the amount of tax chargeable and the amount of tax payable. What is the difference between these two amounts. Tax chargeable is the amount of tax due before any relief for any credits (both repayable and non-repayable credits). It includes tax chargeable on ring-fenced income such as profits or gains attributable to rezoning decisions. Tax payable is the amount of tax chargeable, less all credits both non-refundable credits and refundable credits. It is before tax paid direct to the Collector General (e.g. Preliminary Tax). 25 Do I have to include the amount of tax already paid? Yes. Your self assessment should include the tax already paid to the Collector General (e.g. Preliminary Tax). As part of your self assessment, you must declare the balance of tax due after taking into account any tax already paid to the Collector General Page 4 of 6

5 26 Revenue sent me a Revenue notice of amended assessment after I self assessed; the figures in both my self assessment and Revenue s amended assessment are the same what did I do wrong? If you do not include all tax already paid to the Collector General, it will be necessary for Revenue to issue a notice of assessment to bring the correct amount of tax already paid into account. Note however that you have filed an incorrect tax return if you do not declare tax already paid in your self assessment. 27 What is a self assessment acknowledgement notification? This will be headed Self Assessment Chapter 4 of Part 41A TCA Where you self assess, (either in a ROS or paper return) no notice of assessment will issue from Revenue. Instead an acknowledgement of your self assessment will issue. A similar acknowledgement will issue where you amend your self assessment. 28 What is a Chapter 4 assessment? This notice is headed: Notice of Assessment Chapter 4 of Part 41A Taxes Consolidation Act This will issue where you submit a Form 11/CT1 and do not make a self assessment. This will generally only arise where you have not filed through ROS. This notice is similar to the notice of assessment that issues for years 2012 and prior. A similar amended notice of assessment will issue where an amendment is input by Revenue at your request. 29 What is a Chapter 5 assessment? These notices are headed: Notice of Assessment Chapter 5 of Part 41A Taxes Consolidation Act There are two situations where an assessment under Chapter 5 can issue. (a) Where a self assessment is amended by Revenue either as a result of an audit (or similar investigation), or following a request by you, but your figures are not accepted in full by Revenue. (b) Where, after the return filing date for the particular year you have not filed your tax return, Revenue can issue an assessment in default of a return. This notice of assessment will not show any breakdown of the income, deductions, allowances, reliefs, or credits. [S 959AC(3)] 30 I am completing my return on ROS but column A does not show an amount for preliminary tax paid. As I have paid preliminary tax, do I indicate that I disagree with Revenue s calculation and enter my own figures for tax paid? Preliminary tax will only appear in column A where a pre-populated return is downloaded or you are amending a return already filed through ROS. As is shown in the self assessment panel, you are only agreeing to Revenue s figures at (a) to (c)(ii) inclusive in the Form 11 and (i) to (iii) inclusive in the Form CT1. This agreement is before any amount paid direct to the Collector General. You should not indicate disagreement just because no amount of preliminary tax is shown (where a payment has been made), but you should include any preliminary tax paid in column B i.e. in your self assessment. Page 5 of 6

6 31 Where a pre populated return is opened the tax paid and/or credits refunded are taken into account when arriving at tax payable in Revenue s calculation (column A). What happens if the pre-populated return is downloaded early? The pre-populated return will only reflect Revenue s record at the time the return is downloaded. If additional payments are received by Revenue or refund/offsets made, these will not be reflected in Column A of the self assessment panel. However you should take these into account when completing column B your self assessment. 32 Where can I find more information? On the self assessment page on the Revenue website. Page 6 of 6