Are you a business owner, proprietary director, non-proprietary director or a landlord in Ireland? Did you miss the 31st October deadline for filing your Form 11 Income Tax Return?

We understand that sometimes individuals may be late filing the income tax return due to various reasons. This article will explore the consequences of a missed income tax return deadline and the steps you should take to rectify the situation.

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Consequences of a late Income Tax Return

It's important to note that all of these consequences can apply to those who are late filing the Income Tax Return. By knowing what to expect, you can take steps to minimise the impact and get back on track with your tax obligations. Let us help you navigate through the process and avoid any unnecessary stress or penalties.
  • Late filing surcharge

    The late filing surcharge is a penalty fee that is applied when an individual misses the Income Tax Return deadline. The amount of the surcharge depends on how late the return is filed. If the return is filed within two months of the deadline, the surcharge is 5% of the total liability up to a maximum of €12,695. If the return is filed more than two months late, the surcharge increases to 10% of the total liability up to a maximum of €63,485.

  • Increased risk of Revenue audit

    A late Income Tax Return also increases the risk of a Revenue audit. This is because the Revenue Commissioners are more likely to scrutinize the tax affairs of individuals who have not filed their tax returns on time. An audit can be a stressful and time-consuming process, and you may need to engage the services of a tax advisor to help deal with the Revenue Commissioners. If you are selected for an audit, you will be required to provide documentation to support your tax return and failure to comply with an audit can result in further penalties and fines.

  • Interest due on any late payments

    If you are unable to pay your tax liability in full by the deadline, you will be liable to pay interest on the overdue balance. Interest is also automatically added when a payment plan is set up with the Revenue Commissioners. The interest rate is currently set at 0.0274% per day.

  • Surcharges payable on all director’s income

    Directors of companies are required to file an Income Tax Return each year, regardless of whether they receive any income from the company. If a director is late filing the Income Tax Return by the deadline, they will be subject to the same late filing surcharge as individuals. In addition, it's very important to note that the surcharge will be payable on all of the director’s income, not just the income received from the company.

  • Publication by the Revenue Commissioners

    The Revenue Commissioners publish the names of individuals and companies who fail to comply with their tax obligations. The publication can have significant consequences for individuals, including damage to their reputation and difficulty securing credit in the future.

What to do if there is an error on the tax return?

If you discover an error on your Income Tax Return after it has been filed, you should contact the Revenue Commissioners immediately.

Depending on the nature of the error, it may be possible to amend the return. However, if the error results in an underpayment of tax, the individual may be subject to interest and penalties.

For helpful and professional advice specific to your situation, reach out to our team for support.

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What happens if you cannot pay the full tax bill?


Contact Revenue or your accountant

The first thing you should do if you have trouble paying your tax bill is to contact Revenue or your accountant as early as possible to discuss your options. A payment plan can be put in place.

Phased Payment Arrangement (PPA)

Revenue allows an option to pay in instalments through a Phased Payment Arrangement (PPA). However, an application will need to be completed to avail of this and certain conditions need to be met.

Down payment

Usually, 30-40% of the total tax liability will be required upfront once the PPA is accepted. It is important to note that if you pay your tax late, you will be charged interest and interest will also be included in all PPA agreements.

What happens if you don't pay tax?

Where tax bills are not paid and no effort is made by the tax-payer, Revenue may take enforcement action to collect the outstanding tax. Enforcement action can include:

  • Referral to the Revenue Sheriff
  • Referral to an external solicitor
  • Freeze of bank accounts
  • Liquidation or bankruptcy

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Do late filings affect next years tax returns?

Yes, late filings impact the next year’s tax returns. This is because along with filing the annual Income Tax Return and paying income tax, business owners and directors are also liable to pay annual preliminary tax – i.e. the tax that you expect to pay for the next tax year.

If you are late filing your Income Tax Return, you could potentially underestimate or not pay any preliminary tax, and therefore, when it comes to filing your tax return next year, you could face paying additional interest on the late preliminary tax from last year.

If you are late filing the Income Tax Return, we recommend that you reach out to our team to discuss your options and let us help you take care of your tax obligations.

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If you have already filed your tax return, it’s never too early to begin planning for next year

Tax planning is an efficient way to reduce next year's tax liability. One of the main ways to do this is to check if you have any scope to make a pension contribution to help reduce your tax liability. This can be made up to the Income Tax filing deadline date with tax relief available at up to 40% of the contribution. Our chartered and certified accountants are on hand to provide expert advice and support to all our clients. For information on our services, reach out to our Client Services Team now.

Frequently Asked Questions

Who files Income Tax Returns?

In Ireland, the Income Tax Return is also known as Form 11. In general, if you earn income from self-employment, rental properties, if you are a director of a company in Ireland or if you receive dividends, you are required to file an Income Tax Return.

There are certain categories of individuals who may not need to file a tax return, such as those who earn less than the income tax threshold or receive income solely from PAYE (pay as you earn) employment.

Reach out to our team if you’re unsure whether you should file a tax return in Ireland.

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