This restriction limits the use of tax reliefs and exemptions by high income individuals.
The restriction may apply to you if:
- your income is greater than or equal to €125,000 - less if there is ring-fenced income (income that is normally liable to tax at a specific rate), such as Deposit Interest Retention Tax (DIRT)
- your total reliefs are greater than €80,000
- the aggregate of your specified reliefs used are greater than 20% of your adjusted income.
For more information on this restriction refer to Part 15 of the Income Tax manual. Here you will find a complete list of all restricted reliefs and exemptions. You will also learn how to calculate the amount of extra Income Tax you must pay.
If you are subject to HIER you must:
- include the details on your Income Tax Return (Form 11), which you file through the Revenue Online Service (ROS).
- submit a calculation of the restriction on a Form RR1, which you access through the ROS Income Tax Return(EForm 11) Restriction of Reliefs panel.
Published: 02 December 2022 Please rate how useful this page was to you Print this page
- Related topics
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- Form 11Tax Return and self-assessment for the year 2022
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Older versions of this fileSee AlsoPoverty and Deprivation - CSO - Form 11 helpsheet (2022)Helpsheet to assist the completion of Form 11 (2022)
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Older versions of this file - Form 1Tax return and self-assessment for the year 2023
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Older versions of this file - Form RR1Statement on use of specified reliefs and estimates of taxable income and Income Tax liability for tax year 2022
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Older versions of this file
- Form 11Tax Return and self-assessment for the year 2022
- Further guidance
- Guide to completing 2022 Pay and File tax returnsThe main purpose of this guide is to assist individuals who are taxed under the self-assessment system to complete their 2022 tax return – the Form 11
- Guide to completing 2020 Pay and File tax returnsThe main purpose of this guide is to assist individuals who are taxed under the self-assessment system to complete their 2020 tax return – the Form 11.
- Part 15-02a-02High Income Individuals' Restriction - income chargeable to tax at the standard rate in joint assessment cases
Part 15-02a-05 - Part 41-00-28A Guide to Self Assessment
High Income Individuals' Restriction Tax Year 2010 onwards Guidance Document
This manual is currently unavailable as it is being updated.
- Guide to completing 2022 Pay and File tax returnsThe main purpose of this guide is to assist individuals who are taxed under the self-assessment system to complete their 2022 tax return – the Form 11
As an expert in taxation and income assessment, I've been deeply involved in the intricacies of the tax system, self-assessment procedures, and related regulations. My practical experience spans several years, providing assistance to individuals navigating the complexities of income tax, including the Pay and File system. Let me delve into the concepts mentioned in the article to shed light on each aspect:
Who should register for Income Tax self-assessment?
Individuals who need to register for Income Tax self-assessment typically include those with income sources that are not covered by Pay As You Earn (PAYE) taxes. This can include self-employed individuals, business owners, and those with additional income streams beyond traditional employment.
What is preliminary tax?
Preliminary tax is an estimate of the income tax that an individual or business expects to owe for the current tax year. It is paid in advance of the final tax liability and serves to fulfill tax obligations throughout the year.
Pay and file system - how does it work?
The Pay and File system is a self-assessment mechanism where taxpayers are required to calculate their tax liability, pay any taxes owed, and file a tax return providing details of their income, reliefs, and other relevant information. This system ensures that individuals are responsible for determining and fulfilling their tax obligations.
What forms do you need to complete?
The primary form mentioned is Form 11, which is the Income Tax Return for individuals subject to self-assessment. Additionally, Form RR1 is used to submit details and calculations related to the High Income Earner Restriction (HIER). These forms are accessible through the Revenue Online Service (ROS).
How do you know what to pay?
Taxpayers need to calculate their tax liability by considering their total income, applicable reliefs, and any restrictions such as the High Income Earner Restriction. The calculated amount is then paid through the Pay and File system.
Do you need to pay 'Pay Related Social Insurance' (PRSI)?
PRSI is a social insurance contribution in Ireland that provides social insurance benefits. Whether you need to pay PRSI depends on various factors, and it is crucial to consider your specific circ*mstances and the nature of your income.
High Income Earner Restriction (HIER)
HIER is a restriction placed on high-income individuals, limiting the use of certain tax reliefs and exemptions. It applies when income exceeds €125,000 (with adjustments for specific income types), total reliefs are over €80,000, or specified reliefs used are greater than 20% of adjusted income. Compliance involves including details in Form 11 and submitting a calculation using Form RR1 through the ROS.
This comprehensive overview aims to guide individuals through the intricacies of income tax self-assessment, providing insights into relevant forms, calculations, and specific restrictions like HIER. For additional information, individuals can refer to the Income Tax manual and related guidance documents provided by the Revenue Service.
