Taxpayers Urged to Act Fast to Avoid Late Filing Surcharges of 5% or 10%

Thousands of self-assessed taxpayers throughout the country are scrambling to avoid late filing surcharges of 5% or 10%meet the ROS pay-and-file deadline on November 17^th 

Tax experts at Taxback.com are urging those who have yet to file, to move swiftly to try and meet the deadline, or if the timeline is simply too tight, then to at least mitigate the impact of late filing surcharges imposed by Revenue.

Avoid Late Filing Surcharges of 5% or 10%

The tax experts have issued a pay and file explainer including some top tips for those who are obliged to file an income tax return for 2021.

Speaking in advance of the deadline, Barry Cahill of Taxback.com, said:

“The October 31^st deadline has already passed, but anyone who uses the Revenue online system has until November 17^th to get their affairs in order. We know this time of year can be stressful for people – many of those affected are small to medium-sized business owners who, in the midst of the day to day running of a business, may have lost track of their tax affairs, or simply may not be as organised as they had hoped to be, and so are now clambering around trying to collate receipts and relevant documentation.”

Missing the Deadline

Taxback.com say two things could happen if you file late – you will be subject to both interest and surcharges.

Mr. Cahill explained: “Revenue can charge interest at a rate of 0.0219% of your liability per day or part of a day that you extend beyond the deadline. This may seem like a small percentage, but it all adds up.

“Legally, Revenue is entitled to charge interest to anyone who is late paying their liability, but in actuality, this is rarely charged, and if so, usually only to tax avoiders or evaders.

The second possible charge is the 5% (increasing to 10%) surcharge. Revenue is fastidious when it comes to self-assessed taxpayers filing tax returns and the late fling surcharge is automatically applied by ROS.

But Revenue is not an unreasonable entity – their policy is always to communicate with the taxpayer to resolve any situation. So, I would advise you to either contact them directly – or ask whoever handles your tax affairs to do so, to explain your situation and to relay to them that you are moving to rectify matters as soon as possible.

There had been calls for a further extension of the November 17^th deadline for business in receipt of some Covid supports, but as of yet there has not been any extension confirmed and at this late stage in the year it is unlikely to be introduced.”

Mr. Cahill concluded: “Being self-assessed should not be seen as intimidating – neither should it be something that people ignore. The more tax savvy you become, and the more financially literate we become as a nation, the fear element of the ‘taxman’ should reduce.

Revenue’s job is to ensure that everyone is taxed correctly and fairly. However, it is up to us to ensure that we include everything on our return to reduce our liability. Don’t be afraid to spend a little extra to get the help of an expert, it could be the best money you spend this year”.

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