When I become chargeable person

You will be considered 'a chargeable person' for self-assessment purposes if you are due to pay tax on behalf of yourself (or another person) for a particular tax period.

For instance, if you:

• have other sources of income in addition to your PAYE salary

Or

• are self-employed

Or

• are a director of an Irish company

then you will be considered a 'chargeable person' (with some exceptions to this general rule).

You will not be considered a chargeable person if:

• Your total income consists of PAYE salary
  
  
• You are in receipt of both PAYE and non-PAYE income – where the total non-PAYE income assessable to tax
  - Does not exceed €5,000 and
  - Is coded into your certificate of tax credits (exception does not apply to company directors) or is taxed at source
  
  
• You have been notified by Revenue that you don't need to file a tax return

Once an individual becomes a chargeable person, they must register as such with Revenue by completing a Form TR1 or Form TR1 (FT).

A TR1 Form can be used by resident individuals, partnerships, trusts or unincorporated bodies registering for tax in Ireland.

Meanwhile, a TR1 (FT) Form can be used by non-resident individuals, partnerships, trusts or unincorporated bodies registering for tax in Ireland.

These forms can also be used to register for VAT, Relevant Contracts Tax and/or Employer's PAYE/PRSI. Once completed, you will receive a 'Notice of Registration' confirming that your registration has been completed.

But when is tax actually due to be paid?

Many PAYE employees have their tax automatically deducted from their weekly or monthly salary payment.

However, the self-assessment system is very different to the PAYE system. In the self-assessment system, tax is due to be paid on or before 31 October each year.

The tax that you pay is based on the income you earned during the previous tax year. So, for example, tax on income earned in 2022 is due on 31 October 2023.

Many PAYE employees have never filed a tax return. However, every self-employed person must file a tax return every year. The type of tax return you have to file depends on how much income you earn.

If your taxable non-PAYE income in a year does not exceed €5,000 and your gross non-PAYE income does not exceed €50,000, you will need to submit a tax return Form 12. If your taxable non-PAYE income exceeds €5,000, or your gross non-PAYE income exceeds €50,000, you must register for self-assessment and file a tax return Form 11.

Note: An individual whose non-PAYE income is zero due, for example, to an allowance which reduces their taxable profits to zero, is considered a chargeable person. This is because zero profits can't be taxed through the PAYE system. In other words, a tax return Form 11 must be filed.

The deadline for filing a tax return (Form 11 or Form 12) for a tax year is the 31 October of the following year.