Self-assessment can feel daunting, particularly if it is your first time filing a tax return. But if you have additional income on top of your wages, it’s important to know how to declare it. To make things easier, we’ve put together everything you need to know about Form 11, including who it’s for, how to fill it in and how your tax will be calculated.
Once you know exactly what to expect, things will be that little bit easier when the end of the tax year rolls around. Here is our complete guide to the Form 11 tax return.
Who Is Form 11 For?
Form 11 is for anyone that Revenue deems a ‘chargeable person’. According to their definition, a chargeable person is someone who has a gross non-PAYE income of more than €30,000 or someone who makes additional income on top of their PAYE earnings that amounts to €5,000 or more in a year. Certain company directors are also classed as chargeable persons, which we’ll explore more below.
If you fall into any of these categories, you are required to declare this income to Revenue and self-assess your tax liability each year. This is where Form 11 comes in.
What exactly is classed as additional income? Examples could include:
- Rental income or Airbnb income
- Foreign income
- Income from side-jobs such as freelance projects or work as a taxi driver or delivery person
- Income from dividends
- Deposit interest
If your additional income is less than €5,000 per year, then you are not considered a chargeable person and will need to fill in Form 12 instead. For more information about what this entails, head over to our post, ‘Why do I Need to Fill a Form 12?’
Form 11 For Company Directors
If you are a company director and you own more than 15% of the shareholding in the company, you are classed as a proprietary director and are also required to complete a Form 11 each year. That’s because all proprietary directors are chargeable persons. Where Joint Assessment applies, your spouse or civil partner is also brought within the self-assessment provisions.
How To Fill In Form 11
Form 11 can be completed and submitted online or printed and sent through the post. You can choose whichever option is easier for you, although there are a few benefits to completing the form online.
For instance, the standard deadline for Form 11 is October 31st every year, though if you choose to complete the form online this is extended. The exact date changes every year, but it generally falls in the second week of November.
As filling in Form 11 online is done so through your Revenue account, the form will also be pre-populated with some of the data Revenue has on file. This makes it a little easier and quicker to complete.
To fill in Form 11, you will need the following information to hand:
Your Revenue login details (if you are completing Form 11 online)
Basic personal including your name, contact details and marital status
Your PPSN (Personal Public Service Number)
Details of the nature of your additional income (e.g. allowable expenses and total profit)
Details from your Employment Detail Summary (.e.g. Your gross pay and tax paid)
Your Tax Credit Certificate
It’s always a good idea to prepare all of this information before you sit down to file your taxes, as it will make the whole process more streamlined. If you are filling in Form 11 online, however, you do have the option to save the form and come back to it later if you need to find additional information.
You do not need to provide supporting documentation along with Form 11 unless Revenue asks you to. But remember, you are required to keep any documents relevant to your taxes (such as receipts) for six years just in case Revenue requests them.
If you would like to enlist the help of an accountant, you may want to know how much would it cost. Check out our accountancy fees page for more information.
If your additional income comes from a rental property, it’s really important to be clear on what your allowed expenses are before you complete Form 11. The information you put in this form will determine how much tax you will pay, so without this knowledge it is easy to be overcharged. On the flipside, if you accidentally claim expenses you are not entitled to you can run into trouble with Revenue.
For instance, the first field under ‘Expenses’ for your rental income is ‘Repairs’. You might assume that this covers any repairs made to the rental property, but this is not the case. Even if you bought the property with the intention of letting it out, repairs made prior to the first tenancy cannot be claimed.
This is where Form 11 can get a little tricky, as it does not provide many guidelines, but instead assumes you have a certain level of prior tax knowledge. If you are at all unsure, it’s always best to seek help from a tax professional. They can make sure it is not only filled in correctly, but that you save money on your bill wherever you can.
What Tax Will I Owe?
Your income tax liability is calculated as follows:
- Your total taxable income is added together (including PAYE income and any additional income as listed above)
- Your tax payable is calculated using the current standard rates of tax (e.g. for the year 2021, a single person would be charged 20% for total earnings of up to €35,300 and the balance would be charged at 40%. You can check your current tax rate here.)
- Your total tax credits are then deducted (e.g. a single person tax credit of €1,650 and a PAYE tax credit of €1,650)
- Your USC and PRSI charges are calculated and added to your total
- Finally, any taxes already paid (including through the PAYE system) will be deducted to leave you with the final charge
Once you have filed your tax return and Form 11, you will receive a notice of assessment (NOA) from the Revenue Commissioners outlining how much tax you need to pay for the year. This document will also show you a breakdown of your income and tax credits along with how the liability (or refund) has been calculated.
You will normally receive this within a few days if you have submitted your return online and a little later if you sent it in by post. It will also generally take longer if you submitted close to the tax deadline.
How To Pay
You can pay your tax bill directly through your account on the Revenue website using an ROS debit instruction, debit or credit card. If you have submitted your forms through the post and don’t have an online account, you also have the option to send a cheque or bank draft directly to Revenue Commissioners. Make sure to include details of the taxes to be paid and your PPS number so they know what the money is for.
If you are owed a tax refund, Revenue will either send you a cheque or refund the amount straight to your bank account. Generally speaking, refunds are issued within 5 working days unless your claim is selected for further checking. So, why not give yourself a tax refund as a present?
Check out our guide to form 12 as well.
Taxes aren’t always straightforward, and if you are at all unsure about filling in Form 11, it’s well worth seeking help from an accountant. Doing so will give you peace of mind that everything has been done properly and will help avoid any unwelcome surprises.
At SCK Group, our team of in-house chartered accountants can assist you with your tax return, checking your tax credits, relief and income to make sure you are not only compliant but saving as much money as you can. If you’d like to find out more, we would be delighted to help. Send us a message via our contact page today and we’ll be in touch soon.