Taxpayers to have higher liabilities this year.
Taxpayers may face higher than expected liabilities this year because of the universal social charge and increased income levy.
Hundreds of thousands of people taxed via the self-assessment system must file their 2010 tax return, pay the balance of last year’s tax bill and pay preliminary tax for this year by the October 31 deadline.
Taxpayers who opt to make their return and pay their tax onlive via the Revenue Online Service (ROS) can avail of the extended deadline of November 15.
This year taxpayers may face a higher liability than expected for a number of reasons, including increases in the income levy in 2010 and the introduction of the universal social charge (USC).
The calculation of preliminary has become more complicated this year due to the introduction of the USC, which applies since January 1 this year.
The calculation of preliminary tax needs to be considered well in advance of the deadline. Where tax is underpaid the Revenue can charge interest.
So to make sure that you meet all your filing obligations you should now consult your tax adviser. This will ensure that you will know your liability in good time and have the funds in place to meet your liabilities when filing your return.