Tax return - once-off ?

J

jrewing

Registered User
Messages
554
As I sold some stock options in 2007 and sent in a RTSO1 form, the Revenue system now identifies me as having to file a tax return.

My question is: do they only expect a tax return for 2007 ? Or are they expecting me to send one in for 2006 as well ?

Also, if I was to have no non-PAYE income in 2008, will I have to make a tax return for that year ?

JR
 
I think you just become an "assessable individual" (i.e. self assessed) for the year in which the non PAYE income was received (in this case 2007 I presume) but am not 100% sure.
 
It is quite likely that if you have become registered for income tax you will have to file returns back to 2001 or 2002. This is pretty standard stuff and you will need to return your P60 details. You will also be expected to file an income tax return each year going forward. You will need to brings your returns up to date and then request that you be de-registered for income tax.

Its a messy situation and seems to be something that happpens automotically if you end up registered for incoem tax.

I have seen it happen with company directors in particular. Someone asks you to act as a director for a small company. The company gets registered for tax and you end up automatically registered for income tax.

Register with www.ros.ie and file your return on line. If you need to file previous returns also it can be done thorugh ros also.
 
Presumably by "registered for income tax" you mean "registered for self assessment"? Note that in recent years there were some changes to the RTSO1 rules whereby once the non PAYE (often nominal due to share price discounts) income is under a certain limit (c. €3,175 or something like that) you may not automatically become self assessed and it may be possible to have any ongoing liabilities (e.g. 6 monthly ESPP share purchases) dealt with through a deduction to your tax credits rather than through RTSO1. It is all a bit messy alright. I filed three RTSO1s between 2005 and 2006 (none more recently while our ESPP scheme was suspended temporarily ... :() and paid the tax but never (to my knowledge) became self assessed and my request that any ongoing liabilities be dealt with through the PAYE system drew a blank with Revenue.
 
The legislation on share options states that you become a "chargeable person" (ie have to submit a tax return) for that year.

While the Revenue can ask you to submit a tax return any year, it does not automatically follow that because you exercised share options you will have to submit tax returns for earlier or future years.
 
ClubMan said:
but never (to my knowledge) became self assessed
Click to expand...

Might be worth checking on ROS, if you actually are you'll be liable for late payment surcharge. I didn't realise I was either until I got a letter from Revenue more than a year later telling me to file a return.
 
zephyro said:
Might be worth checking on ROS, if you actually are you'll be liable for late payment surcharge.
Click to expand...
Surcharge on what? I have no outstanding tax liabilities. I don't have a ROS account - I do have a PAYE self service account and it gives no indication that I am considered self assessed for the relevant periods.
 
go to www.revenue.ie and click on the "contact locator" half way down on the right hand side. Put in your PPS and hit search. If you are registered for income tax it will tell you
 
Thanks. Did that and the options presented are Pay As You Earn and Relevant Share Option Tax. What's the significance of that do you know? :confused:
 
I would reckon that they do not expect you to file a form 11 income tax assessment.

you can probably file a form 12 return through the PAYE channel of ros
 
But do you reckon that they do expect one or the other? In case it's relevant I have requested and received P21 balancing statements for the past 5 years having submitted various payments of liabilities (e.g. RTSO1) and claims for relief (e.g. MED1, tax/PRSI relief on standalone pension contributions etc.) over most of those years and am pretty sure that my tax affairs are all up to date.
 
A PAYE employee would not be expected to file a return every year only those years where a liability or refund arises.

If you have any additional income such as the proceeds from the sale of the stock options or if you are due relief on medical expenses then you are obliged to return the detail to the Inspector of Taxes. It is almost a case that if you do not file then it is assumed that you did not have any.

The Revenue Commissioners will not assume that you disposed stock options every year so it is up to you to let them konw.

For someone who is registered for income tax the opposite applies. They are obliged to file a return irrespective of whether they had an income or not.

Have you tried to file the relevant returns through ros yet?
 
command said:
Have you tried to file the relevant returns through ros yet?
Click to expand...
I have already paid the liabilities via RTSO1 and received receipts for these payments. I'm not sure if the return is separate from this - i.e. RTSO1 is just for payment but the income must then be declared separately? I presume you mean the PAYE self service aspect of ROS since I am not registered for ROS proper. I haven't tried the former yet because I forgot my PIN and have requested a new one. Last time I checked there was no facility for logging the RTSO1 income here if that remains necessary. Note that normally when I have tax issues (e.g. liabilities or claims) I just return the specific relevant form or write to Revenue and that has worked fine to date (i.e. never unilaterally asked to do a full Form 12 or Form 11 (self assessed?) return). I can do without the hassle to be honest but just to reiterate I am pretty sure that my tax affairs are totally up to date! Thanks for your help.
 
If you have been asked to complete a return - complete it.
But, write a letter and ask to be removed from the relevant database as you are a PAYE employee - should work for future years.
 
Domo said:
If you have been asked to complete a return - complete it.
Click to expand...
No - I wasn't asked to complete any return at any stage.
But, write a letter and ask to be removed from the relevant database as you are a PAYE employee - should work for future years.
Click to expand...
Thanks for the tip.
 
Thanks for the helpful discussion here. This info will make my life easier when making return.
 
You must log in or register to reply here.
Back
Top