Self-employed can’t afford to be sloppy with tax

They pay more but self-employed must still comply, writes Brian Keegan

It’s income tax return filing season and this week is the critical week. The returns of income which Revenue expect to receive between now and November 16 are largely made by the self-employed. The tax affairs of employees are mostly handled through PAYE. But tax is full of rules to catch out the unwary.

Opening a foreign bank account means a person must send in a return of income, even if they’re not self-employed. So, too, must someone who received a benefit from their employer in the form of shares during the year. Proprietary directors — those with more than a 15% shareholding — even if all their income is taxed under PAYE, must file a return. Such exceptions aside, PAYE workers don’t usually have to complete income tax returns. But it’s a must for anyone self-employed – whether you’re trading, like wholesalers and retailers, or providing services; like doctors, engineers, solicitors or accountants.