Fortunately, there is one deadline for the self-employed and company directors*: 31 October, or mid-November By this date, you are required to:
- Calculate and pay preliminary tax for income tax (IT), PRSI and USC for the current tax year. There are three methods to calculate the preliminary tax as shown below. The method chosen can help you in managing your cash flows:
- 90% of the estimated tax for the current year
- 100% of tax due for the previous year
- 105% of tax due for the pre-preceding year. This option only applies if you pay by direct debit and tax due for the pre-preceding year was not nil.
- File your tax return (Form 11) and and self-assessment for IT, PRSI and USC for the previous year AND pay any balance of tax due for the previous year.
To illustrate the above, by 31 October 2018, a self-employed person/company director is required to pay preliminary tax for 2018, file tax return for 2017 and pay any balance of tax due for 2017.
* Company directors are generally required to file a self-assessment annually even if all their income are taxed through PAYE. However, unpaid directors or those who control not more than 15% of a company’s shareholdings are generally not required to file the self-assessment.