Income Tax and Investment Property – Why Place it on the Long Finger?

The phone call

One lunch time while sitting down to have a well deserved cup of freshly ground coffee, my phone rang. I answered it and I started a conversation with a young man who was obliviously uncomfortable with the whole idea of dealing with a tax advisor. Let’s call him ‘M’!

M had come to me as a referral from existing income tax client. He owned an investment property and didn’t know how to deal with the tax situation. He searched on the internet and visited all the chat rooms and got a list of different answers as long as his arm. The pinnacle came when a colleague from work, some years older than himself heard about his situation and informed him that, “he’d have to pay a bucket load of tax…” Of course, this response led him to a number of sleepless nights until a friend (my client) gave him my number and told him to go and have a chat with me.

The above is a classic situation of numerous phone calls that I receive. Where people have worried themselves and missed numerous hours of sleep worrying about a situation that can be rectified (almost!) by a phone call to a friendly tax advisor or accountant. The hardest thing is making that call!

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2010 Self Assessment Income Tax

If you are Self Employed, you may have noticed recently that there has been some debate as to whether the October 31st deadline for the submission of 2010 Self Assessment Income Tax Returns (Form 11, Form 11E and Form 12) should be brought forward to September 30th 2011.

In the end the idea was scrapped, but not before it had worried a lot of people. Whilst it would have been good news for accountants and tax advisers such as ourselves who haven’t enjoyed a break during the October Bank Holiday weekend since God knows when, it would have been bad news for everyone else as they would have had a month less to get their 2010 Self Assessment Tax Returns completed and submitted to the Revenue Commissioners! They would also have a month less to find the money required to pay this bill. Hence, the proposal caused much worry before it was eventually shelved.

As the old saying goes, “Forewarned is Forearmed”. By having your 2010 Self Assessment tax Return completed earlier this year, you will ensure that you meet the revised deadline and thus avoid any penalties for the late submission of returns. From a cash flow perspective it will also allow you to budget for the amount you will be required to pay. For example, if you have your return completed now and find that you will be required to pay €4,000 to the Revenue Commissioners in October 2011, you can put away €500 per month for the 8 months between March and October inclusive and avoid the last minute scramble that most Self Assessment taxpayers are familiar with to find the money required to pay their tax bill.

If you would like to stay in control of your personal tax requirements, please don’t hesitate to contact the office to discuss your 2010 Self Assessment Income Tax Returns (Form 11, Form 11E and Form 12). We offer a professional, friendly reliable service and all staff are fully qualified accountants. We do not employ any unqualified or part-qualified accountants so you can be confident that the person who produces your Income Tax Return is fully qualified to do so. Our fee structure is fully transparent and agreed upfront with each individual client so there will be no surprises. By taking this approach, we believe that we can generate long term relationships with our clients and that they will not hesitate to refer new clients to us.

Income Tax Deadline… What are you waiting for?

October 31st 2010 is the deadline for the self employed, Directors and people declaring other forms of income outside of PAYE, for example, Investment rental properties!

The reason why I’m writing this article is as follows, I have been a practicing accountant for over eight years and every year I am baffled by the amount of people that come to me in a panic on or around the 31st Oct, needing to complete their tax returns from the previous year. Yes, you read correctly, from the previous year!

This means that the 31st Oct 2010 is the deadline for all worldwide incomes to be declared to the Revenue Commissioners for the year ending 31st December 2009. Therefore, you have ten months to get your act together.

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