Insights From the FMco Team

Who must file an income tax return?

Revenue has issued guidance on who must file a tax return under the new full self-assessment regime.

This guidance confirms that an individual whose main source of income is taxable under the PAYE system and who has a small amount of other income which is either coded against their tax credits or fully taxed at source does not need to file a tax return (a Form 11). Revenue has determined that the amount of non-PAYE income which can be taxed in this way is limited to €3,174 provided the gross income before expenses does not exceed €50,000. Therefore, where the total non-PAYE income (e.g. rental income, dividends and deposit interest) on which a person is chargeable to tax:

a. does not exceed €3,174, and b. has been subject to tax through the PAYE system (or has been fully taxed at source),

then that person is not a chargeable person and therefore is not required to file an income tax return. The €3,174 threshold relates to income received and not taxable profits, meaning the majority of landlords with rental income are oblidged to file and annual tax return.

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