Reporting DIRT under PAYE scheme or Self Assessment

[BlueHorseShoe]

Is there any benefits or disadvantages to report DIRT under PAYE scheme (normally at the end of the tax year in say Jan 2025 for tax year 2024) compared to doing self assessment (deadline Oct 2025)

I can think of at least one benefit - compound interest until October 2025

However do you lose some tax benefits/credits under self assessment scheme

Thanks in advance if anyone can help with this question

 

[BlueHorseShoe]

Actually in retrospect that compound interest would only be for the first year when switching from PAYE to Self Assessment due to pre-lim tax thereafter - also looks like 4% PRSI is due if you do Self Assessment - in that regard it only makes sense if you earn significantly more than 5000

 

[Corola]

You are exempt from PRSI if you report DIRT under the PAYE scheme.

You could submit your PAYE return in October 2025 as well so it would benefit from compound interest. In fact you could be fined for late payment under Self-Assessment if you hadn't made a preliminary payment in October 2024.

 

[BlueHorseShoe]

You are exempt from PRSI if you report DIRT under the PAYE scheme.

You could submit your PAYE return in October 2025 as well so it would benefit from compound interest. In fact you could be fined for late payment under Self-Assessment if you hadn't made a preliminary payment in October 2024.

Not if this is your first switch from PAYE to Self Assessment - I think you only switch if by Dec 2024 you have over 5000 non-paye income

 

[ACER10]

From Revenue:
"If your net Non-PAYE income in 2024 exceeds €5,000 you should still input it on your 2024 PAYE return as you have not registered for Self Assessed Tax for 2024.

If you register for Self Assessed Tax for 2024 by the 31st December 2024 you will complete your Tax Return through ROS.

TR Form for completion to register can be downloaded through link.

The completed form should be return via a MyEnquiry to our Income Tax Department.

It is important when you are completing your returns that you provide documents from the relevant Tax Authorities confirming any tax you have already paid on foreign income to avoid double taxation.


https://www.revenue.ie/en/self-assessment-and-self-employment/documents/form-tr1.pdf


You should complete the following;
Part A on page 1
Part B Registration for Income Tax PAYE on Page 3