How to: Prepare for your income tax return
We are in the middle of the personal tax return season. Revenue will tell you to file on time. So you know the deadline is 31 October. But how do you go about preparing your tax return and getting it right? Have you claimed everything you should? Here are a few tips to put you on the right track.
- Claim in good time – don’t delay. There is a four year time limit for making tax reclaims. Don’t lose out by not claiming in time.
- Use ROS: Revenue gives you a free tax calculation software to file your own return online. It is the easiest way of preparing your tax return, but you are fully responsible for the content. Be careful to fill in the return accurately. An inaccurate return is treated as a late return, leaving you open to penalties and surcharges, even for innocent mistakes.
- Make sure you claim for all allowances and reliefs you are entitled to. The claimable reliefs vary year to year as do the eligibility criteria. Get our checklist of the current reliefs available. It will guide you through the web of claim options and help you decide if a tax reclaim is possible.
- Remember that you can submit tax claims back for up to four years. Even if you have only a small amount of tax to reclaim, it may be worthwhile if can be claimed back in each of the four years.
- But don’t get caught unawares with a tax bill. You are best to have the possible reclaimable tax checked out first. You don’t want any hidden tax liabilities to appear as well.
- Being up to date means better tax planning for the future. Until you know what your tax position is you can’t plan for future years. You only have a month to this year’s tax deadline, but you don’t need to wait until the last minute to file your tax return. It can be done as early as January. Early is better. You get refunds back earlier. You have months to get any payment due sorted.
Don’t wait, get up to date now!