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Revenue in Donegal are targeting PAYE workers with additional income they may not have declared, including taxable social welfare, a leading tax consultant has warned.
Noel O’ Donnell, Mabel McHugh & Michael Coll of The Tax Clinic.
Due to the economic recession and the lower tax take from the business sector, the Revenue are on a mission to collect every cent they are owed, says Mabel McHugh from The Tax Clinic in Killybegs.
Mabel says that there has been a huge increase in the number of PAYE workers who are being questioned by the Revenue about their different sources of income including those who have received taxable social welfare such as Jobseekers Benefit on which tax may be owed.
She says if you are in receipt of any other income apart from your income earned as an employee you may have an obligation to declare this on what is called a Form 12.
From her experience people are of the understanding that if they receive a P60 at the end of a year they are tax compliant. This is not the case in many circumstances as a P60 is only a document summarising your pay and tax details from a particular employment.
It is important to note that it is each person’s own responsibility to review their tax affairs and ensure all taxes that are owed have been paid.
Mrs McHugh says that you may have been sent out a Form 12 for the following reasons:
• The Revenue may have obtained third party information regarding additional non- paye income such as payments from the Department of Agriculture, Rental Income, Dividend Income, Taxable Social Welfare etc.
• You are in receipt of foreign income such as a U.K. State Pension.
• You have had a gain subject to Capital Gains Tax during the year, for example property or shares sold.
When should I complete and return my Form 12?
Typically, you will need to complete your Form 12 by October 31st in the year following the tax year of assessment. i.e. For 2013 taxes, the Form 12 must be submitted by 31st October 2014.
Her advice is if you have received a Form 12 do not ignore it. You must complete the form honestly ensuring that you declare your income from all sources. In all circumstances it may be beneficial to seek professional advice.
WWW.THETAXCLINIC.IE was founded in February 2010 by Mabel McHugh & Michael Coll.
The Tax Clinic is the only business in the Northwest that specialises in offering services to P.A.Y.E workers. Mabel says that “while working for over 20 years in the financial services sector she noted that there was no professional representation for P.A.Y.E workers”. With this in mind Mabel together with Michael, who are both members of The Irish Taxation Institute set up www.thetaxclinic.ie and have gained a huge reputation in this complex area of taxation.
Mabel works in The Tax Clinic in Main Street Killybegs, while Michael works in their premises on the High Road Letterkenny along with The Tax Clinics third partner Noel O’ Donnell who has also located Noel O’ Donnell & Co Chartered Accountants in the same building.
To find out more log onto www.thetaxclinic.ie or call into either the Main Street Killybegs or the High Road Letterkenny.
Killybegs Office – 074 97 32055 (Mabel)
Letterkenny Office – 074 91 60550 (Michael)
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