What happens when you make a mistake with your tax return?

[greygoo]

This year will be the first year I (and my partner) will be filing a tax return in Ireland. Besides PAYE we’ve some other small things (shares, CG, expenses) as well. I’m trying to understand if it’s worth to hire an tax advisor or accountant or so, or do our returns on our own.

1) If I let someone else file it, we’ll be safe but don’t like the idea of paying for that service every year (sorry).
2) If we do it on our own we can learn it which will also save us money in the future.

If I make a mistake though and get a check from revenue I understand they recheck every little thing and you’d have to pay the difference+penalty. Which is completely fair.

I think what I’d like to understand is; if revenue does a check, and they notice you filed your tax return wrong, do they understand we’re just humans trying to learn? Will I be ok paying the difference+penalty afterwards in such a case? Or do they see you directly as a criminal?

Maybe a weird q but hope someone has a view on it! I just like to play safe and don’t want any problems in a country where I’m just a guest (for a few years).

 

[lynj]

@greygoo It's a self-assessed system. Revenue do not manually check everything. There isn't enough staff in any Tax administration in the world to check everything submitted by their taxpayers.

What type of tax returns are you talking about? A form 11 via ROS or an online return via your Revenue myaccount and a CG1 for your CGT?

 

[seth504]

@greygoo No big deal, you can amend any tax returns made for the last 4 years, submit it and they will recalculate it. If the result is that you underpaid, they will take it automatically from future tax reliefs. If you overpaid, they will issue you a refund to your account.

 

[seothanhtung]

@greygoo Highly recommend using the simplified forms on paylesstax or some other provider.

The ROS system and forms are horrible and easy to tick the wrong box or fill in something that's not applicable to you. I used to do them but be because you only do them once per year I'd forgotten everything by the next year, so it was always a frustrating experience.

I pay the couple of hundred euro every year for the piece of mind. I also have some CG, shares, expenses.

You can get the cheapest option and just download the file for uploading to ROS, as I don't believe there is much you can do wrong with the third party forms.

 

[vvmax]

@greygoo I’ve always found Revenue very helpful when I ting up and have questions. Otoh, I do use a tax advisor and consider him well worth the money. (I’m self-employed.)

But the other thing you can do is get a tax advisor to do it, learn from that, and do it yourself other years. The downside is that some budgetary regulations may change, as they always do.

He saved me substantial tax one year by suggesting I put more money into my pension. It’s up to yourself.

 

[vaseman]

@greygoo I made a mess of my WFH calculations last year. Someone at revenue reached out as it must have exceeded some nominal threshold somewhere and triggered some flashing lights and / or klaxxon.

They asked to see the breakdown and when I dug it out, saw the mistakes I'd made.

I sent off a revised version with a grovelling apology. The revenue agent updated my (already submitted) return.

It was a painless, human exercise.

 

[cdtaylor]

@greygoo You have to hold onto all receipts in case there is an audit performed on your tax return. It is unlikely they will perform an audit on everyone, but just in case you should hold onto all your receipts just in case if you do not have them uploaded clearly onto system. I have been doing mine now for about 3 years and I get so much more than when I have a 3rd party do it for me. I was unaware I could claim a decent credit for my other half staying home with the kids and having no income for example.

 

[trowe]

@greygoo Castration or a fine rotates every second person.