Revenue charges 0.0219% per day — approximately 8% per year — on any tax not paid by its due date. Interest accrues daily with no cap.
Revenue applies interest using a simple daily rate formula:
| Tax owed | Days late | Interest |
|---|---|---|
| €5,000 | 30 days | €32.85 |
| €5,000 | 180 days | €197.10 |
| €10,000 | 90 days | €197.10 |
| €20,000 | 180 days | €788.40 |
| €50,000 | 365 days | €3,997.35 |
| €100,000 | 365 days | €7,994.70 |
Use our calculator for your specific figures.
These are two separate charges that can both apply at the same time:
| Feature | Late filing surcharge (s1084) | Late payment interest (s1080) |
|---|---|---|
| Trigger | Return filed after deadline | Tax paid after due date |
| Rate | 10% or 20% once | 0.0219% per day, ongoing |
| Cap | €63,493 | No cap |
| Can both apply? | Yes — simultaneously | |
Revenue penalties can be reduced through voluntary disclosure or appealed to the Tax Appeals Commission. Speak to D’Emilia Accounting before paying or responding to Revenue — the timing determines your options.
Revenue charges interest at 0.0219% per day on unpaid tax under TCA 1997 s1080. This equates to approximately 8% per year. There is no cap — interest accrues every day from when the tax was due until the day it is paid.
Interest starts from the due date for the tax payment — not the return filing date. For income tax (Form 11), the due date is 31 October (or the ROS extended deadline) for the prior year's liability. For preliminary tax, it is 31 October of the current year.
No. Interest paid to Revenue on late payment of tax is not deductible from income or profits for tax purposes.
Revenue rarely waives interest on its own initiative, but in the context of an overall settlement, interest amounts may be negotiated — particularly where a taxpayer has made a voluntary disclosure or entered a phased payment arrangement in good faith. An accountant can negotiate on your behalf.
Yes. The late filing surcharge (s1084) and late payment interest (s1080) are separate charges and can both apply at the same time if a return is filed late and tax is also paid late. You can owe both simultaneously.
Interest continues to accumulate daily. Revenue can enforce collection through the courts, the sheriff, attachment of bank accounts, or referral to the Revenue defaulters list. Enforcement typically begins after formal demand notices are issued.
Disclaimer: Information based on TCA 1997 s1080. Verify current rates at revenue.ie. Not legal advice.
Our accountants can review your situation, prepare a voluntary disclosure, or represent you through the Tax Appeals Commission process — reducing or eliminating your penalty.