The Tax Clinic

What is a Form 12?

The Form 12 is an annual Income Tax return for people whose primary source of income is their PAYE income.

If you are in receipt of any other income apart from your income earned as an employee you may have an obligation to declare this on a Form 12.


Why would I have been sent a Form 12?

• The Revenue have recently issued 60,000 Form 12’s to individuals who may have an obligation to make an annual return.

• The Revenue may have obtained third party information regarding additional non-paye income such as payments from the Department of Agriculture, Rental Income etc.

• You have had a gain subject to Capital Gains Tax during the year, an example would be property/land or shares sold.

• You may be in receipt of a foreign pension.

What income types are assessable under a Form 12?

• Income from a trade or profession e.g. Farming/Musician/Services.

• Rental Income.

• Dividend Income.

• Foreign Incomes – Foreign Pensions, Foreign Rental Income.

When should I complete and return my Form 12?

Typically, you will need to complete your Form 12 by October 31st in the year following the tax year of assessment. i.e. for 2014 taxes, the Form 12 must be submitted by 31st October 2015.

What should I do now?

If you have received a Form 12 do not ignore it. You must complete the form honestly ensuring that you declare your income from all sources. In some circumstances it may be beneficial to seek professional advice.

Compliance Code for PAYE Taxpayers

This code was developed by Revenue to set out a clear and consistent approach to checks carried out on PAYE tax payers. For most PAYE tax payers the correct amount of tax will have been deducted from their earnings during the year by their employer. In some instances, underpayment of tax may arise as a result of the following;

• Tax credits, allowances & reliefs granted that the taxpayer was not entitled to.

• A change in the taxpayers personal circumstances meaning that certain tax
credits, reliefs & allowances no longer apply.

• Loss of entitlement to exemption from tax or reduced rate USC.

In order to ensure that the correct tax is collected and to prevent any build up of tax arrears, it is essential that taxpayers keep Revenue informed with as much up to- date information as possible about his or her earnings/ income.

Tax defaults may be corrected by the taxpayer in any of the following ways:

– Declare that an innocent error has been made.

– Make a self-correction of the error.

– Make a “Qualifying Disclosure”.

Revenue intervention can take the form of either:

– An aspect query.

– A profile interview.

– An audit or investigation.

We at THE TAX CLINIC are experienced in dealing with all forms of Revenue Intervention and the completion and filing of Tax Returns.

WWW.THETAXCLINIC.IE was founded in February 2010 by Michael Coll & MabelMcHugh.

The Tax Clinic is the only business in Donegal that specialises in offering services to P.A.Y.E workers. Mabel says that “while working for over 20 years in the financial services sector she noted that there was no professional representation for P.A.Y.E
workers”. With this in mind Mabel together with Michael, who are both members of
The Irish Taxation Institute set up and have gained a huge reputation in this complex area of Taxation.

Mabel works in The Tax Clinic in Main Street Killybegs while Michael now works in their new premises on the High Road Letterkenny along with The Tax Clinics third partner Noel O’Donnell who has also located Noel O’Donnell & Co Chartered Accountants in the same building.

Other Services:

We also offer a cost effective payroll outsourcing service. We can also look
after your P.A.Y.E and V.A.T compliance and obligations.

To find out more log onto or call into either the High Road, Letterkenny or Main Street, Killybegs.


The Tax Clinic, High Road, Letterkenny, will assist you in all your tax return queries.

The Summer is truly a distant memory as the team at The Tax Clinic knuckle down to face their...

The Tax Clinic at High Road, Letterkenny THE Revenue Commissioners are now regarded as one of the most sophisticated...


Donegal News is published by North West of Ireland Printing & Publishing Company Limited, trading as North-West News Group.
Registered in Northern Ireland, No. R0000576. St. Anne's Court, Letterkenny, County Donegal, Ireland