Form 11. Doing my own tax returns, how difficult?

Planet X

……how long is a piece of string……..question, I know.

My returns have been submitted this year for 2023 so, not an issue. Going forward, I’m retiring in December coming, how difficult would it be to fill out this form(s) with State Pension and private pension incomes?

Are there any guides out there?

Cheers.

Geuze

Do you have to use Form 11?

Form 12 is easier.

Planet X

Wasn't aware of it, cheers, will look into it.

nhg

Once you no longer have self-assessed income you can de-register from self-assessed income tax.

If you are registered for self-assessed income tax for even only 1 day in the tax year you must submit a Form 11 for that tax year whether you have self-assessed income or not. i.e. if you de-register from 01/01/2025 you must submit a form 11 for 2025 (so pick a date in 2024 to de-register)

Once de-registered, you can file a eForm 12 as a PAYE taxpayer online to claim tax relief on health expenses etc if paying income tax on your private pension. You have 4 years to file a eForm 12 if you want to claim tax relief.

Planet X

I have an accountant doing my returns every year. 2024 will be the last year in self employment, so, I’m not self assessed?

I want to save money and do my own returns. Next year I’ll be on a State Pension and have a private pension also. So, two sources of income. This should be straight forward return but I haven’t a clue where to start……yet.

coylemj

Next year I’ll be on a State Pension and have a private pension also. So, two sources of income. This should be straight forward return but I haven’t a clue where to start……yet.

You will be on PAYE. The Dept of Social Protection (DSP) will inform the Revenue that you are getting the state pension. Revenue will know exactly how much state pension you will be paid in 2025 and will reduce your tax credits and your standard rate band for 2025 accordingly. You will end up paying the PAYE tax due on the state pension by foregoing tax credits and part of the standard rate band used to calculate the PAYE to be paid on your private pension. That means that, each week, the state pension will be cash into your hand, tax paid.

If the state pension and the private pension will be your only incomes, you should be all square with the taxman by the end of 2025. So you should only need to submit a return in early 2026 if (e.g.) you wanted to claim a rebate for medical expenses and the like.

Planet X

Great explanation…..thanks so much.

So, my accountant will do my tax returns for 2024 next year and after that, 2025 onwards, I’ll not have to do any tax returns as long as I have a State and Annuity private pension the Revenue know about?

homer911

If you have dividend income you typically have to file a Form 11, even when your main source of income is PAYE

homer911

Dont forget that your preliminary tax is due soon..

SureYWouldntYa

https://www.boards.ie/discussion/comment/122628842#Comment_122628842

To burst your bubble a little, Revenue don't always automatically reduce a persons credits and cutoff for the state pension.

I work in practice and have seen a number of cases where someone's full credits and cutoff are allocated to the private pension. Then when their tax return for the year is done, they will have full exposure to tax on the state pension with no credits and little if any cutoff left.

Some clients are happy to get a bit more each week/month from the private pension in real time and pay the tax the following November, however most choose to reduce their credits/cutoff accoridngly

Even then with christmas bonuses and other cost of living bonuses its tough to always reduce the credits and cutoff by the right amount

Planet X

Paid……cheers 😀

Mrs OBumble

https://www.boards.ie/discussion/comment/122630492#Comment_122630492

Provided that the last thing the account does is to end your self employment registration.

Geuze

https://www.boards.ie/discussion/comment/122630528#Comment_122630528

Only if the non-PAYE income exceeds 5,000.