Top Tips for Filing Your Self-Assessment Tax Return
The deadline for filing your self-assessment tax return is approaching. The official deadline is October 31st 2021. However, this can be extended if you use Revenue’s Pay and File system to pay, and file using Revenue Online Service (ROS). The extended Pay and File deadline for 2021 is November 17th 2021.
We have created tips to help you ensure your self-assessment tax return is completed correctly.
Tips for Filing Your Self-Assessment Tax Return
File Your Return Online
This extends the deadline to 17th November in 2021 as opposed to the normal filing date of 31st October 2021.
Send your information as early as possible to your accountant, as this will allow them to plan according and structure your return in the most tax efficient way.
Maintain Proper Records
Each individual is required to maintain all tax information and documentation for 6 years, as Revenue are entitled to query these years.
Be Aware of Allowable Expenses & Deductions
Ensure you are aware of allowable expense deductions to lower your tax bill. For example, the list below is an example of deductible expenses. This list is not exhaustible.
- Cost of Sales
- Wages and remuneration
- Rent & Rates
- Light & Heat
- Accountant/Legal Fees
- Certain Loan Interest Payments
- Certain Lease expenditure
Pension Tax Relief
Pension contributions can offer up to 40% personal tax relief. Contributions can be made up to the date of the tax deadline 17th November.
Beware of the Time Limitations on Tax Reliefs
You may be eligible to claim tax relief on medical expenses and third level tuition fees. In general, there is a 4-year time limit to ensure you receive this tax relief.
It is recommended that all business transactions are maintained on accounting software. Gallagher Keane use Xero and Hubdoc, but there are many affordable software solutions for both small and large businesses.
File on Time
If you miss the deadline an automatic surcharge is attached to your return. It can range from 5-10% depending on the date of filing. Further interest and penalties can also be added.
Communicate with Revenue
If the liability cannot be paid in one lump sum. Communicate with Revenue and organise an instalment arrangement or avail of the current tax warehouse scheme available during Covid. This will allow you to manage your cashflow and allow your business to grow.
Hire an Accountant
An accountant should and will save you tax. It is advisable to hire an accountant to assist in preparing and filing your tax return.
Why Work with Gallagher Keane Chartered Accountants?
Gallagher Keane provide professional accounting, tax, and financial advice to many start-up businesses. Gallagher Keane offer a comprehensive range of tax services to corporate and private clients with a particular emphasis on helping them to structure their businesses and financial affairs tax efficiently. We provide tailored solutions to the individual needs of our clients. Find out more about our personal tax services here.
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