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Late tax return - PAYE all paid, small earning from dividends

  • 13-11-2017 8:34pm
    #1
    howayahorse
    Registered Users, Registered Users 2 Posts: 30 ✭


    Hi all

    I've made a mistake in my understanding of my tax obligations and am wondering if I will be penalised if I submit late returns or do the tax office show any leniency with first time mistakes?

    PAYE all paid and up to date but I started buying some foreign shares the last couple of years from the company I work for. I have earned a small amount in dividends. €40 in 2015 and €90 in 2016. German withholding tax of 26.375% was deducted at source and Irish Income tax was deducted at the standard rate of 20% by the share scheme trustees. I misread the information sent by the scheme and thought I didn't have to do anything.

    My salary brings me up to the 40% tax band so I should be paying Irish Income tax on these at the higher rate but I believe I can also claim back 11.375% from Germany so look like I do owe a small bit of tax.

    So I know it's only a small amount but I feel like a bit of an eejit for only coping on to this now. From what I've read a late return means that I have to pay a penalty which is 5% of my entire tax bill...a lot more than the value of the dividends themselves!

    Does anyone have any advice on how to handle this with the tax office or do I just have to suck it up and pay the fine?


Comments

  • #2
    exaisle
    Registered Users, Registered Users 2 Posts: 2,675 ✭✭✭exaisle


    howayahorse wrote: »
    Hi all

    I've made a mistake in my understanding of my tax obligations and am wondering if I will be penalised if I submit late returns or do the tax office show any leniency with first time mistakes?

    PAYE all paid and up to date but I started buying some foreign shares the last couple of years from the company I work for. I have earned a small amount in dividends. €40 in 2015 and €90 in 2016. German withholding tax of 26.375% was deducted at source and Irish Income tax was deducted at the standard rate of 20% by the share scheme trustees. I misread the information sent by the scheme and thought I didn't have to do anything.

    My salary brings me up to the 40% tax band so I should be paying Irish Income tax on these at the higher rate but I believe I can also claim back 11.375% from Germany so look like I do owe a small bit of tax.

    So I know it's only a small amount but I feel like a bit of an eejit for only coping on to this now. From what I've read a late return means that I have to pay a penalty which is 5% of my entire tax bill...a lot more than the value of the dividends themselves!

    Does anyone have any advice on how to handle this with the tax office or do I just have to suck it up and pay the fine?

    If you're an ordinary PAYE taxpayer, you probably won't be penalised at all...


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