Making mistakes when it comes to tax and dealing with Revenue can be costly. Here are 5 ways to save yourself some of that pain.
1. File and pay on time
Missing deadlines for filing returns or paying tax can be costly. In many cases penalties apply.
Also, failing to comply with deadlines increases the risk of you getting a Revenue audit.
In some cases Revenue have the right to make an assessment of the tax owed, and then it can be stressful to appeal and sort the correct liabilities.
Deadlines are published well in advance (including a reminder of upcoming ones in our monthly newsletter) so there is no real excuse for missing them.
2. Keep good records
If you are ever subject to a Revenue audit having records that are complete, accurate and correct is vital.
A full paper trail can give the Revenue auditor more confidence in you and will be the only real defence in the event that something is contested.
3. Be honest when completing tax returns
It can be tempting to think that ‘everyone else is getting away with it so why can’t I?’
However, the reality is that Revenue vigorously pursue tax evaders.
This can result in fines and penalties, expensive legal and professional costs, and you hold a very weak position in terms of negotiating the outstanding taxes due.
4. Plan, plan, plan
Many financial decisions have a tax effect and can be date-sensitive when it comes to your tax bill. Once a deadline has passed it may be too late to claim or qualify for a relief or tax credit.
So, if you are considering making a big financial decision give yourself time to consider the tax consequences.
While we would never encourage allowing the tax tail to wag the dog, it may be that some forethought will allow you to structure the decision in a tax-effective way.
5. Talk to us first
The tax system is complicated and contains many inconsistencies and pitfalls
Added to that tax laws change year on year so what was a good strategy three or four years ago is a bad one today. Mistakes or missed opportunities can be very frustrating.
To avoid these talk to us first. As experts in dealing with the tax system and with Revenue we can help to make sure your decision is a tax effective one.