Self-assessed tax deadline brought forward to September

TAX-FILING:SELF-ASSESSED INDIVIDUALS will have less time to get their taxes in order this year, as the pay-and-file deadline has been brought forward by one month to the end of September.

However, taxpayers will be able to settle their bills with Revenue by credit card thanks to a new measure contained in the Bill.

Until now, taxpayers within the self-assessed net, such as self-employed people and certain individuals with additional income, had until October 31st to file their tax return for the preceding year. This was also the deadline for paying any outstanding balance for the previous year, and paying preliminary tax in respect of the current year.

As a result of the Finance Bill, these obligations will now have to be met by September 30th. Self-assessed taxpayers who choose to pay and file online through the Revenue Online Service (Ros) will still have an additional 14 days after the general deadline.

According to the Department of Finance, bringing forward the deadline will reduce the “over-concentration” of tax receipts in the period from late October to mid-November, and is expected to enhance the accuracy of forecasting in advance of the usual December budget. It will also help facilitate an earlier budget if required, it said.

Andrew Cullen, president of the Irish Taxation Institute, said the change was likely to affect more than 600,000 taxpayers. He said it was not good news for Irish businesses in terms of cash flow. Those already experiencing cash flow difficulties will be placed under greater pressure with the earlier filing date, he added.

The Finance Bill also provided for the introduction of additional methods of paying taxes and duties, such as credit cards. While the move was described as a customer service initiative to provide taxpayers with greater flexibility, it is also a move to facilitate “voluntary compliance”.

Taxpayers will have greater assurance that personal information provided to the Revenue will be treated confidentially. Currently taxpayer confidentiality does not have a statutory basis, but a new proposal will address this shortcoming. The treatment of taxpayer confidentiality will now be aligned with other institutions such as the Central Bank.