Learning how to navigate self-assessed tax returns

Preparing and filing your self-assessed tax return can be a daunting task for any taxpayer, but our guide to completing the Form 11 should make the task easier and may even help you to save some money along the way.

We have concentrated on common issues whilst highlighting various tax reliefs available. If you have complex investments or wish to claim property-based incentives, you should engage with a professional tax adviser.

The filing deadline

The deadline for filing your 2022 tax return is 31st October 2023. This can be extended to 15th November in cases where you are paying and filing online.

The following must be completed online on or before this deadline: File the Form 11, pay any balance of income taxes for 2022, and pay your preliminary income taxes for 2023.

If you are unable to pay your tax liability, it is imperative that you still file your return by 31st October. Revenue will apply interest and penalties if the tax deadline is missed and the rates at which this is applied are available on the Revenue website.

ROS services

If this is your first time filing a Form 11, you will need to register for income taxes by following the e-Registration process on the ROS website or by completing the Form TR1 which can be found on www.revenue.ie.

To register, you can click on the Register for ROS link on www.revenue.ie. Registration can take up to eight days.

What is preliminary tax for 2023?

It is a payment on account of your 2023 tax liability. The payment must be at least: 90% of your final liability for 2023, or 100% of your final liability for 2022, or, in certain circumstances, 105% of the final liability for 2021.

I’m a PAYE worker and have received some small amounts of non-PAYE income and I want to claim some tax reliefs – do I need to complete a Form 11?

If your net assessable non-PAYE income was less than €5,000 in 2022, and this income was coded against your PAYE tax credits or fully taxed at source, you are not regarded as a self-assessed taxpayer for 2022 - provided your gross non-PAYE income before expenses does not exceed €30,000.

Therefore, you would not need to complete a Form 11. You should instead file a Form 12 (or eForm 12). Proprietary directors are required to file a Form 11 each year even if their only income is PAYE income.

We will now take a closer look at the Form 11 and some frequently asked questions.

Personal Details

I got married/entered a civil partnership in 2022; do we get any extra tax relief?

Individuals who married or became civil partners during 2022 may be entitled to a year of marriage relief. In the year of marriage/civil partnership you are taxed as single persons and must file separately.

If you paid more tax individually than you would have if you were taxed as a couple, you can claim a refund of the difference prorated for the relevant period of marriage or civil partnership.

Residence status

On the Form 11, individuals are required to confirm that they are either a resident/non-resident, ordinarily resident/non-ordinarily resident, and domiciled in Ireland/not domiciled in Ireland.

You will be regarded as resident in Ireland in 2022 if you spent: 183 days or more in Ireland for any purpose in 2022, or 280 days or more in Ireland combining the number of days spent in Ireland in 2022 and 2021 (with a minimum of 30 days spent in Ireland in each year).

Tip: A day is one on which you are present in Ireland at any time during the day.

Remittance Basis of Taxation

I came to live in Ireland from abroad a few years ago; do I have any special tax status in Ireland if I have non-Irish income?

Domicile is a complex legal concept. It may, broadly, be interpreted as meaning permanent home in a particular country with the intention of residing permanently in that country. An individual acquires a domicile of origin at birth.

If an individual is not Irish domiciled, certain types of foreign sourced income are liable to Irish income taxes only if the income is remitted to Ireland.

This basis of taxation does not apply to foreign employment income to the extent it is attributable to your work duties performed in Ireland. Such income is taxable in full under the PAYE system whether remitted or not.

Tip: If you’re Irish resident but not Irish domiciled, you should ensure that you tick the appropriate boxes at line 14 as you would be entitled to the remittance basis of taxation.

Income from Trades, Professions or Vocations

If you are self-employed, you must report your self-employed income in Panel B. Generally, you are assessable on your tax adjusted net profit for a 12-month accounting period ending in 2022.

Irish Rental Income

I have let out a property during 2022; how do I calculate my net rental income?

You must calculate how much tax you owe on the gross rent receivable after deductions for expenses and allowances. A profit/loss is calculated for each rental source.

The rental income on which you pay tax is the total profits less the total losses.

Allowable expenses include insurance premiums, maintenance/repairs, certain pre-letting expenses, 100% of the mortgage interest paid on the property, provided you have made the appropriate registrations with the Private Residential Tenancies Board, and expenses in between rentals of the property in certain circumstances.

Tip: For non-resident landlords, there are additional procedures to be adhered to. Details of which can be found on the Revenue website.

What if I have some income from Airbnb lettings, do I have to declare this income?

Income arising from Airbnb lettings are taxable.

The Revenue Commissioners’ view is that this income should be reported as trading income (Panel B) where the taxpayer is trading as an ongoing business (e.g., a guesthouse) or other income (Panel F line 412) where the income is occasional in nature.

This would mean that rental losses on other properties could not shelter income from this source.

Tip: When treated as other income, there is a Revenue practice of allowing deductions for incidental costs directly associated with the provision of that service.

Claim for tax credits, allowances, reliefs, and health expenses

Home Carer Tax Credit

You can claim this if you are married/civil partners, and you care for: A child for whom you are entitled to Social Welfare child benefit, a person who is permanently incapacitated by reason of mental/physical infirmity and such person normally resides with you for the year, or a person aged 65 or over.

It is important to note that a spouse/civil partner cannot be one of the persons cared for under this relief.

The Home Carer tax credit for 2022 is €1,600 subject to the Home Carer earning less than €7,200 in the year. If you earn in excess of that amount, the credit will be reduced pro-rata and no credit will be available where you earn €10,400 or more.

Rent credit

Details on the qualification criteria can be found on the Revenue website. Tax relief is granted at 20%. The maximum amount of credit is €1,000 for a jointly assessed couple or €500 for all other cases.

If the rent tax credit exceeds your income tax liability, the credit is limited to the tax liability arising. You must make a formal claim to receive the credit for 2022 by completing your income tax return for 2022.

Tip: Parents paying for their child’s accommodation while attending third-level education should be able to access the rent tax credit.

Employer paid medical insurance

If your employer paid medical/dental insurance premiums on your behalf (or on behalf of your dependents) you will have been subject to payroll taxes on this benefit in kind.

You are entitled to claim a relief for 20% of the gross premium on your tax return, subject to certain limits.

Health Expenses

If you have incurred unreimbursed medical expenses during the year, you may be able to claim a tax credit of 20%of the expenses.

Routine dental expenses such as fillings and standard extractions expenses do not qualify for relief.

Tip: You must keep the receipts for six years in case the Revenue Commissioners selects your return for examination.

Capital Gains (CGT)

Gains and losses made on the sale of your chargeable assets during 2022 should be reported as part of your tax return.

Tip: You should report your losses from the sale of chargeable assets in 2022 even if you do not have any chargeable gains for 2022. Losses brought forward from prior years can in general be used to offset gains in 2022.

For 2022, CGT payment dates, have already passed. If you are only paying your CGT liability when you file the Form 11 you are likely to be charged interest by the Revenue Commissioners.

Self-Assessment

You must make a self-assessment for 2022 by completing the self-assessment section of the Form 11. If you do not do this, you may be liable to a penalty of €250.