More than half of taxpayers are unsure of their tax obligations
A recent survey has found that more than one million Irish taxpayers are not aware of their personal tax obligations.
A total of 54 per cent of Irish taxpayers are either unsure or do not know their tax filing obligations.
The tax advisory group who carried out this survey suggested that this equates to just over one million workers who are not aware of their legal requirements – considering there are around 1.9 million people working in Ireland currently.
With 1,500 taxpayers participating, the survey also discovered confusion around tax filing requirements for both PAYE and non-PAYE income.
It is clear from these results that there is a significant gap in employees’ understanding of the tax system and their obligations to it.
The survey also found that only 22 per cent are aware that those earning additional income outside the PAYE system are obliged to file an annual tax return.
There is obviously widespread ambiguity when it comes to tax filing obligations and employees need to be given a base level of knowledge on income tax and how this works.
Most commonly, tax must be paid on additional earnings and often, those earning over a certain amount will need to file a self-assessed tax return. This includes any income through things like rent, investments, or self-employment.
People and businesses are subject to a wide range of taxes including Income Tax, Corporation Tax, Capital Gains Tax, Inheritance Tax, Stamp Duty, Value Added Tax and National Insurance. Tax planning with McMahon & Co. can help reduce or remove the effect of these taxes, whether you’re a business or an individual.
If you are a business owner, we can help you plan your business activities to maximise the available tax reliefs and discuss with you in advance the tax implications of business decisions. Not only this, but we can assist you in educating your employees of the tax obligations that they may not have the in-depth knowledge on.
For help or advice with understanding an completing your tax returns, please get in touch with the team at McMahon & Co.
