More than 50,000 self-assessed tax payers who overpaid their preliminary tax last year will shortly receive a tax rebate from the Revenue Commissioners. Most of the repayment cheques were sent out this week.
The majority of self-assessed taxpayers have underpaid and must make a balance payment to the Revenue by April 30th.
As part of the continuing reform of the self-assessment system, the Revenue announced details of the new "Pay and File" arrangements, which will come into effect this year.
The main feature of the new system is that a single deadline - October 31st - will apply for all dealings between the Revenue and the customer.
With Pay and File, taxpayers will pay tax and file a return in one go.
The new provisions simplify the self-assessed system by streamlining filing and payment obligations for taxpayers.
For the future, October 31st will be:
the payment date for preliminary tax for the current tax year;
the payment date for any balance of tax due on the previous tax year;
the payment date of any capital gains tax due for the previous tax year. It will also be the filing date of the tax return for the previous tax year.
Transitional arrangements will apply this year to facilitate the smooth introduction of the new system. The new payment and filing date will be extended by three weeks to November 21st for some customers. These are:
customers and their agents who file and pay through the Revenue Online Service (ROS);
those whose aggregate tax payment is less than €5,000, provided the payment is made by single direct debit payment;
for any "paper-filing" customers who make their payment through ROS.
The filing date is also being extended to November 21st for those who pay by cheque, provided the tax is paid by October 31st. The Revenue will calculate the amount of tax due for any tax return received before August 31st and issue notices of assessment in time for taxpayers to meet the new payment deadlines.
If an agent/accountant acts on your behalf, it will be necessary to forward your books to them in time for your return to be prepared.
Because of the change to the calendar tax year, the next return due is for the nine-month period from April 6th, 2001, to December 31st, 2001.
The filing date for your return has also changed in relation to the end of the tax year. You must now file your return on or before October 31st, 2002, 10 months after the end of the tax year.
The place of filing your return has also changed, from your local tax office to the Office of the Collector General in Limerick.
This year a new payment option is available - Single Debit Authority - whereby you can have your net liability debited direct from your bank account.
Electronic filing is also being encouraged. Self-assessed tax payers can now file their income tax return on-line through the ROS at www.revenue.ie/ros. The service provides instant calculations of your tax liability.
It may take up to two weeks to register as a ROS customer because certain passwords must be sent by land mail.
To help with the introduction of these Pay and File changes, the Revenue is holding seminars around the State for tax agents and business representatives and will send an explanatory booklet to all 340,000 people affected.
