Self Employed - Tax Penalties are due.

Uncle Chenzo

Hi there,

OK, so this is the story.

Set up as a sole trader, bank account, registered business name etc..... in 2005.

I've had no contact with the revenue since i set up. I havent made any returns to them and i'm expecting the penalties due. Now, the business hasn't made any significant profit, and have bounced one set off an accountant - who told me that all i need to pay is the prsi (€253.00), since there was very little profit.

What i need to know is what sort of penalites am i expecting?
Should i just close the business, say nothing, and set up again under a different name and move on?

Any guidance would be really appreciated.

Cheers.

marizpan

You cant just close a business and set up under a new name. You are a soletrader and personaly liable for all if any debts especially to the revenue.
You would be best to get your accounts filed and pay what is due unless you want to declare yourself bankrupt, and you dont want to do that.

When setting up a business you should have been aware of all the legal responsiblities with that . There might not be any penalties as it is a nomial amount of profit

Mr. Incognito

Seek professional help.

As regards penalties it's 5% where the return's filed within three months late and 10% of the tax liability thereafter, plus a daily rate of interest.

Seriously, an AITI qualified accountant asap!

swanvill

Your first accountant should be able to help you file your returns, you should make sure that you have claimed all tax credits that you are entitled to minimise the fines and interest.

Kingkong

I take it the business is only starting off. If say for example you made a loss in yr 1 of 10K, year two a loss of 5K and a profit of 15K in year three your previous losses can be offset against ur yr3 profits i.e no tax. So depending on where the business is going having returns filed where there are losses is worth while.