Self-Correction without Penalty
What happens if you make a mistake ?
To encourage taxpayers to regularly review their taxes on a on-going basis, Revenue will allow taxpayers ‘self-correct
without penalty’ any return, subject to the following conditions
1. the taxpayer must notify Revenue of the adjustments to be made [either in
writing or electronically through the Revenue On-Line (ROS)
2.the taxpayer must include a computation of the correct tax or duty and statutory
interest payable
3. A payment in settlement must accompany the submission. [Payment can be
made online,
4. for bi-monthly/quarterly/half-yearly remitters of VAT, if the net underpayment of
VAT for the period being corrected is less than €6,000, the amount of the tax
can be included (without interest or notification to Revenue) as an adjustment
on the next corresponding VAT return following that in which the error was
made.
The following time limits will apply in respect of self-correction without penalty;
A. Income tax & CGT – the self-correction must take place within twelve months
of the due date for filing the return/self-assessment
B. VAT, the self-correction must take place before the due date for filing the
Income Tax or Corporation Tax return for the chargeable period within which the
relevant VAT period ends
C.• Self-correction for CAT must take place within twelve months of the due date for
filing the return.
Any queries on the above, do not hesitate to give us a call on 091 763817 or email oliver@taxreturnhelp.ie