In Practice
No tax filing extension this year
By Aidan Clifford, ACCA’s Advisory Services Manager
Sep 29, 2009 - 9:01:55 AM

The self employed tax filing deadline is 31 October, but most taxpayers avail of the extension to file electronically on Revenue on Line (ROS) and therefore have until 16 November to pay and file using ROS.  To get the extension you have to “pay” on 16 November and many taxpayers are finding this more difficult than in previous years.   ACCA (Association of Chartered Certified Accountants) is warning the self employed that if they need to put in place an instalment arrangement to pay their tax this year, that they need to have filed by 31 October and not 16 November. 

Aidan Clifford, ACCA’s Advisory Services Manager, said “The key is to do your income tax return early and agree an instalment plan early.  Most accountants in practice will be very busy in the weeks coming up to the taxation filing deadline and negotiating an instalment plan with Revenue is time consuming.  If you need an instalment plan the self employed need to get their books and records into their accountant as early as possible”

Self employed income tax is paid all in one lump sum: on 31 October if paper filing; or 16 November if electronically filing.  The amount of taxation payable, even for a modest business, is quite substantial and many self employed taxpayers borrowed the money from a bank and paid the loan off over the next year.  Many businesses are reporting that access to borrowing is no longer available and the tax still has to be paid.  Revenue are accepting instalment plans for taxpayers who are unable to pay, but the instalment plan has to be agreed and in place prior to 31 October and not the traditional 16 November date.  The first time a taxpayer is genuinely unable to pay a taxation bill, be that income tax, PAYE or VAT, Revenue are generally accepting instalment plans, usually over 12 months.  Revenue attitude to second or subsequent non payment of tax, or default on an instalment plan, is much less benign.  Simply not paying or not filing a taxation return or fraudulently completing a tax return is looked on very unfavourably by Revenue.