Tax Accountant | Personal Tax Accountants Dublin | OSA McQuillan

We make sure your business and personal taxes are done using any tax breaks and allowances and file tax returns in accordance with the law.

Each client has their own needs and OSA McQuillan will provide a service designed to for them.

Who Needs to File a Tax Return?

‘Chargeable Persons’ – generally self-employed people but also people with another source of income other than PAYE Income. For example:

  • Landlords who have Rental Income or people with Investment Income
  • Directors owning more than 15% of the shares of the company
  • A taxpayer who has a gain from a share option
  • A taxpayer acquiring a Foreign Life Policy
  • A taxpayer acquiring a material interest in an offshore fund

Note: It does not include a taxpayer whose only source of income is social welfare or pensions.

Important Taxation Dates

Income Tax returns – Form 11 ( self employed taxpayers ) and Form 12 (PAYE and / or self employed income below €5,000) have to be filed on or before the 31st October each year. Revenue usually allow an extra 2 weeks after that date, to taxpayers who file the return and pay all of their tax bill in full (including Preliminary Tax).

Surcharges, Interest & Penalties

Late filing of returns may be subject to 5% surcharge ( Max €12,695 ) on your tax bill ( if less than 2 Months late ) or 10% surcharge ( max €63,458 ) on your tax bill (if more than 2 Months late ).

Revenue can also apply interest to late payments, charged by the day (.0219% per day).

Preliminary Tax

This is income tax payable in respect of the current year. As you file your tax return for the year 2017, for example, the tax return and payment date is 31st October 2018. However you will also be required to pay preliminary income tax.

You can pay either

  • 90% of the actual final bill for that year (2018), or
  • 100% of the final bill of the previous year (2017).

Where preliminary tax rules are used, the last part of your Income Tax for the year is due 31st October in the following year.  So you pay a part of the Income Tax bill for 2018 in 2018, and the last bit is paid in 2019.

Tax Bands and Rates (Updated for 2018)

The standard tax rate is 20%. This rate is for income up to €34,550 for a single person, €43,550 for a married couple (one income) and €69,100 for a married couple (two incomes)

Up to €9,000 of the married band for those married with two incomes is transferrable between spouses.

The higher tax rate (also known as the marginal tax rate ) is 40% and is used for the balance of income not taxed at 20%.

The Universal Social Charge (USC) is also levied, from 1% to 8% and generally PRSI is charged at 4%.

Tax Credits, Exemptions and Reliefs

Once you have calculated your income and taxable amount using the above rates, you can use your tax credits. Revenue usually send you a copy of your tax credit certificate showing you your tax credit. However they are not always accurate as things may have changed.

H2 – Tax Accounting, Credits that you need to know about 2017/18

Here are some of the tax credits for the year 2017 (and are up to date as of January 2018)

Personal Tax Credits

Tax Credits according to status - valid as of 2017

STATUS

TAX CREDIT

Single Person

€1,650

Married Persons*

€3,300

Widowed

€1,650**

Widowed (With Children)

€2,190

PAYE Credit

€1,650

Self Employed Tax Credit (New in 2016)

   €550

Age Credit (65 or Over)

   €245 (€490 married)

Dependent Relative Credit

     €70

Blind persons Credit

€1,650

Single Person Child Carer Credit

€1,650

 *Married persons (also includes those in a civil partnership)

**An additional €1,650 is allowed in year of bereavement

 

 

Exemptions

Income up to €18,000 is exempt for anybody over 65 years of age. This is increased to €36,000 for married couples. It increases further by €575 for a first and second child and by €830 for any additional children.

Reliefs

  • Childcare Services – When gross annual income for the provision of childcare services is not in excess of €15,000, the income is exempt
  • Health Expenses – Most medical expenses including prescription drugs, doctors and consultants fees are relieved at the 20% rate. Note that routine dental and opticians bills care do not qualify.
  • Rent a Room Relief – where an individual lets a room (or rooms) in their main residence as residential accommodation, the income is exempt if below €14,000 (since 2017). The threshold includes sums received for meals or services supplied. (Note: No requirement to register for Residential Tenancies Board in this regard).
  • Start Your Own Business Relief – Where an individual has been unemployed for 12 months and starts a business as a sole trader, the first €40,000 of profits are not subject to income tax. PRSI and USC will be charged.

 

Other Reliefs and Credits

  • Third level tuition fees – but not Registration Fees
  • Fees for approved training courses
  • Home Carer Credit
  • Home renovations
  • Expenditure on energy efficiency of residential premises
  • Pension Contributions
  • Medical Insurance Premiums – usually relieved at source by the medical insurance company
  • Dental Insurance – again usually relieved at source
  • Permanent Health Benefit Schemes
  • Relief for employing a carer