Questions and Answers

I haven't put aside enough for my tax liability - what are my options?

Q: I’m self employed and I’ve only just prepared my tax return. As a result, I’ve only just found out that I haven’t put enough aside for my tax liability. What should I do- should I put off filing my return until I have the money for my tax bill?

A: You are still required to file your tax return by the filing date. In order to avail of the extended online filing date of 13 November, you are technically required to file and pay by this date. If you do not have the funds in place to make the full payment, you should pay as much as you can upon filing and contact Revenue immediately to explain the shortfall. Over the past number of years Revenue have become more lenient in this regard and are willing to work with individuals, if they are honest and upfront regarding under/late payments of tax. Your accountant can contact Revenue on your behalf and agree a late payment date. Revenue are still obliged to charge interest on this late payment but in some cases may waive this, if the payment is made in a timely manner.

Date published 13 Nov 2014

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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