How easy is a tax return???

Prenderb

Hi all, first time on the tax forum - I hope this is a quick and easy question.

I was skirting around on a bank's website, looking at their investment products, specifically, managed funds. They also state on the website that if the fund increases in value (fingers crossed!) you are liable for tax (naturally, no complaint per se), and that you must make a return annually.

Apart from keeping records (hope the bank helps), is it a straightforward job to make a tax return on something like this?

I had a look at the form they say you have to use and it's pretty gruesome looking to me. As an aside question, I was considering trying to sell some hobby products - could they be accounted for on the return as well?

I've always been PAYE so this is all a bit of a mystery. Apologies if I've wasted time!

kennyb3

You will simply need to file a Form 12, and really require two entries apart from basic information on the front page based on what you ve said:

1. Enter your P60 details and claim the relevant credits.

NB - make sure to claim the paye credit (employee tax credit) as loads of people tend to miss this.

2. Return the income from the fund (be it interest or a dividend)


You could also think about claiming:

- unreimbursed qualifying medical expenses
- Waste/service charges.

If and when you decide to sell some items yourself you may need a Form 11. You will need this when your Case I profit goes above (€3,174)

Regards,

Brian

Prenderb

Thanks, you make the Form 12 sound fairly easy, even though it looks huge! Form 11 - is that much the same? Just a question of filling in a few details? Am I likely to incur any sort of audit then, going down this road? Maybe I'm being naive thinking I won't be audited as a PAYE taxpayer!

Kristopherus

Form 11 is about 4 times as detailed as Form 12 !!!!!

kennyb3

Prenderb wrote: »

Thanks, you make the Form 12 sound fairly easy, even though it looks huge! Form 11 - is that much the same? Just a question of filling in a few details? Am I likely to incur any sort of audit then, going down this road? Maybe I'm being naive thinking I won't be audited as a PAYE taxpayer!

The form 12 is relativelys simple, based on what you ve said there are large parts you can skip over - only fill out what you need.

The form 11 is a bit more detailed but not hugely. It only becomes tricky when you ve a full set of accounts to enter.

If and when you decide to start trading and reach form 11 stage you can click on my username for my website (if you feel you need an accountant) or PM and i ll simply help you as best i can