If you have additional income aside from your primary earnings, it can be tricky to know exactly how, or even if, you should declare it. If you are used to not having to file your own tax return it can feel particularly daunting, with a number of different forms and technical jargon to contend with.
During your research, you may have heard of Form 11 and Form 12. But how do you know which is the right form for you? In this guide, we’ll be taking a closer look at Form 12, outlining exactly what it is, who it’s for, and how to fill it in.
What is Form 12?
This tax form is designed for people who make additional income outside of their regular PAYE income or pension. The additional income must be less than €5,000 per year (if it exceeds this amount then Form 11 must be used instead). It could come from:
- Rental income (ether long-term or through a platform like Airbnb)
- Freelance work done on the side (or side jobs like taxi driving, food delivery etc)
- Dividend income on shares
- Foreign income or pensions
Form 12 can also be used to claim tax credits such as medical expenses, Single Person Child Carer Credit and Owner-Occupier relief, that aren’t provided for on your tax credit certificate. If your additional income amounts to more than €5,000 per year, you will need to complete Form 11 instead.
When is the Deadline for Completing Form 12?
The deadline for form 12 and form 11 to be submitted is October 31st (detailing income from the previous tax year). However, if you choose to complete them online you can benefit from an extended deadline. While the date varies each year, it generally falls in the second week of November.
Why Have I Received A Form 12?
Revenue gets data from a variety of sources, which they use to determine if you have any additional sources of income. This includes, but is not limited to:
- The Register of Business Names from the Companies Registration Office
- The Residential Tenancies Board register (where all rental properties must be listed)
- Household charge information and property tax records
- Airbnb
- Banks
This can result in you being sent a Form 12 even if you don’t have any additional income. For instance, if you have purchased a new home but not informed Revenue, they may have assumed you have an additional property that is generating rental income.
Revenue will also send Form 12 to taxpayers at random. Don’t ignore it! Even if you don’t meet the criteria for filling in Form 12, if you receive the form then you are obliged to complete it. However, you should note that if you do meet the criteria but do not receive a Form 12, it is your responsibility to fill it in and submit it.
In recent years, Revenue has made an effort to ensure that all additional income is accounted for, so it’s important that you are clear about any rules that may apply to you. Failure to do so could result in a fine. Remember, just because you need to complete the form doesn’t necessarily mean you will owe any money, so neglect to fill it in and you could end up paying unnecessarily.
Form 12 For Pensioners
If you receive a state pension as opposed to PAYE income, but have additional income of over €5,000 a year as outlined above, you will also need to fill in Form 12 if you are not already being taxed on it. If you are not sure whether you are being taxed on your additional income, you can check your tax credit certificate or ask for help from an accountant.
If you are over 65 and receive money from a private pension in addition to your state pension, then you may also need to complete a Form 12 depending on how much money you receive in total. If your combined private and state pension is over €18,000 (€36,000 for couples) then you are required to fill one in.
If this is the case, and your tax situation is fairly straightforward, then you may prefer to fill in Form 12S instead. This is a simplified version of Form 12 and is just 4 pages long. As with the other forms, you can do this either online through your account (selecting ‘eForm12S’) or by printing off the form at home and posting it.
How Do I Get Form 12?
If you need a Form 12 but haven’t received one from Revenue, you can simply get one from their website. If you get the form through your online account, some of the information will be pre-populated for you using the data from your Revenue record. In the ‘myAccount’ section, you can find it listed as ‘eForm12’. If you don’t have an account, it’s easy to set one up. Make sure to do this in plenty of time, as you will be sent a PIN number through the post that you will need to login.
If you would prefer to fill in the form by hand, it’s fine to print it off. Once completed, you can then post it to Revenue. This may be the preferable option for those who need to submit Capital Gains Tax, Gifts or Inheritance details. This information can all be included on the paper form, while those who submit their taxes online will need to fill out separate forms.
Filling In Form 12
At first glance, Form 12 looks fairly lengthy, but you only need to fill in the sections relevant to you. Before you do so, you will need the following information to hand:
- Your login details (if you are completing the form online)
- Your PPS (Personal Public Service) number
- Your Employment Detail Summary (and your spouse or civil partner’s if you are jointly assessed)
- Details about your other income
- Details of any related expenses
- Your Tax Credit Certificate or details of applicable tax credits
Naturally, you will also have to provide basic personal information including your address, bank details and civil status. Form 12 is not always the most straightforward form to complete, as it does assume you have some prior tax knowledge. For example, it doesn’t tell you what tax relief and credits are available to you, so it’s important to be clear on this before you fill it in.
Rental Income
If you need to fill in Form 12 because you rent out a property, it can be particularly confusing as to what information you need. First, it’s important to note that you must file the return regardless of whether you are making a profit on your rental or not.
You should also be aware of all the allowances available to you so you do not end up being overcharged. There are quite specific rules around what is and isn’t allowed, so it’s not always easy to know what you are entitled to. See our guide to form 11 as well.
Online Form 12 (eForm12)
The eForm 12 simplifies your tax return by pre-filling certain fields from your Revenue record, requiring you to complete only the relevant sections. Note that Capital Gains Tax (CGT) details need a separate return. Here’s how to file online:
- Register for myAccount: Sign up on the Revenue website to receive your PIN by post.
- Access eForm 12: Log in to myAccount and select ‘eForm12’.
- Complete and Submit: Fill out the necessary sections and submit electronically.
Can I Claim Tax Credits Through Form 12?
Conclusion
Taxes can be confusing, and if you are at all unsure about what information to include or how to properly fill in Form 12, it’s well worth seeking some professional advice. Doing so will give you peace of mind that everything has been properly dealt with and will help avoid any nasty surprises.
At SCK Group, our team of in-house chartered accountants can check your tax credits, relief and income to make sure you are not only tax-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.
