From 10th February 2023 the Revenue Commissioners are posting out letters to taxpayers who are currently registered for Income Tax but who have not submitted Income Tax Returns for years of assessment up to and including 2021.
The letters state:
“Based on a review of your Income Tax records, you have not filed any self-assessed Income Tax returns for years up to and including 2021.”
Taxpayers should start receiving such letters from 13th February onwards.
Please be aware that your Tax Agent won’t receive a copy of this notice.
In the event that the taxpayer is no longer deemed to be a “chargeable person” and, therefore, is no longer required to file an Income Tax Returns, he/she/they should cancel the Income Tax registration.
The term “chargeable person” applies to an individual who:
An individual who is in receipt of PAYE income as well as non-PAYE income will not, however, be regarded as a “chargeable person” provided:
A chargeable person is obliged to file an annual Income Tax Return through the self-assessment system.
This can be done online via ROS or by completing a Form TRCN1 which is available on the Revenue website.
If the taxpayer is considered a “chargeable person” but has not filed Income Tax Returns up to 2021, the letter is deemed to be a Final Reminder to file all outstanding income tax returns.
If the taxpayer does not file the outstanding Income Tax Returns or cancel the registration within 21 days of the letter, Revenue will cease the income tax registration without further notice.
Once the Income Tax registration is ceased, if the taxpayer wishes to re-register for income tax he/she/they will be required to submit an online application via ROS.
The Notice states:
“You should note that, where further information comes to Revenue’s attention that you were a chargeable person for any relevant tax year, Revenue reserves the right to reinstate your Income Tax registration.
The non-filing of a required tax return by chargeable persons can result in further contact from Revenue, including a follow-up compliance intervention. Non-filing of a return where required is also an offence for which a person can be prosecuted.”
Today, Minister for Finance, Paschal Donohoe T.D., and Minister for Public Expenditure and Reform, Michael McGrath T.D. presented Budget 2023.
Minister Donohoe announced an extension to a number of existing personal tax reliefs including:
Key measures include:
The scheme will continue at current rates for another two years and will expire on 31st December 2024
Vacant Homes Tax (“VHT”)
A VHT will apply to residential properties which are occupied for less than 30 days in a 12 month period.
Exemptions will apply where the property is vacant for “genuine reasons.”
The applicable tax rate is three times the existing local property tax (“LPT”) rate
Residential Development Stamp Duty Refund Scheme
The stamp duty refund scheme will continue until the end of 2025.
The stamp duty residential land rebate scheme allows for a refund of eleven-fifteenths of the stamp duty paid on land that is subsequently developed for residential purposes. was due to expire on 31 December 2022. It has been extended to the end of 2025.
Pre-letting Expenses on Certain Vacant Residential Properties
The limit for landlords claiming allowable pre-letting expenses is to be increased from €5,000 to €10,000.
The vacancy period is to be reduced from 12 months to 6 months.
Levy on Concrete Blocks, Pouring Concrete and other Concrete Products
A 10% levy was announced in response to the significant funding required in respect of the defective blocks redress scheme. A 10% levy will be applied to concrete blocks, pouring concrete, and certain other concrete products
This levy applies from 3rd April 2023.
9% VAT rate for hospitality and tourism sector
The 9% VAT rate currently in place to support the tourism and hospitality sectors will continue until 28th February 2023.
9% VAT rate on electricity and gas supplies
The temporary reduction in the VAT rate applicable to gas and electricity supplies (from 13.5% to 9%) will be extended to 28th February 2023.
Farmers’ Flat-Rate Addition
The flat-rate addition is being reduced from 5.5% to 5% in accordance with criteria set out in the EU VAT Directive.
This change will apply from 1st January 2023.
From 1st January 2023 VAT on newspapers, including digital editions will be reduced from 9% to 0%.