SELF ASSESSMENT TAX RETURN – A GUIDE FOR SELF EMPLOYED
SELF- ASSESSMENT TAX RETURN:
If you had established a business, or became a landlord recently you are classed as self-employed. If you are setting up a company and need to register for tax, you must first register the company with the Companies Registration Office and obtain a CRO number.
The extended Pay and File deadline for 2021 is December. To help you along the way when it comes to filing your tax return, read this guide for tips on registering for self-assessment and submitting your return. It also covers common mistakes to be aware of, and how using can help you stay on top of you numbers – therefore making the self-assessment process a smooth one.
How to register for self-assessment
How do you register?
Follow these three steps:
Step 1: Apply for your ROS Access Number
Firstly, you have to apply online on for your ROS Access Number (RAN), which will be sent out to your postal address.
Step2: Apply for your digital certificate
Once you’ve received your RAN, you have to apply for digital certificate. You do this by entering your RAN number on Revenue.ie and answering all relevant sections. A ROS system password will be sent to your postal address. Using this password, you can retrieve and download your digital certificate, which you should name and allocate a password to.
Step 3: Save your digital certificate and access Revenue Online Service (ROS)
Once you have retrieved your ROS digital certificate, you can access ROS to file your return, pay your tax and view your account. The registration process can take up to 10 business days, so you need to get moving if you’re not registered yet.
Tax rates are the same as for PAYE workers .If you are a single person, the first €35,300 is taxed at 20 % and the balance is taxed at 40%.If you are a married or in a civil partnership with one income, the first €44,300 is taxed at 20% and the balance is at 40%.
You also have to pay USC (Universal Social Charge ) and PRSI(Pay Related Social Insurance ) on top of your tax liability and these are both charged on your gross income.
Once your tax has been calculated, ROS subtracts your tax credit to reduce the amount you actually have to pay.
PENALTY FOR LATE FILING
A late filing financial penalty is added to the tax due. If your tax return is submitted within 2 months of the submission deadline the surcharge will be 5% and if it is more than 2 months after the submission deadline it will be 10 % and in addition, interest will be charged on tax due for approximately 10 % per annum.
DON’T LEAVE FILLING TOO LATE
Don’t leave filing your tax return to the very last minute.
If You’re struggling with filing tax returns utilize a affordable tax return service . We are here to help. At taxreturned.ie we provide online tax return filing services for self employed individuals