Un registering from self employment and Form 12A

Wiggles

I am hoping that someone can confirm if I have followed the correct procedure.

I have started with a new company 4 week ago as a PAYE employee. I was self employed for a number of years before this. I have filled out a 12A form and I have given it to HR in the new company. Here are my two questions:

On the 12A form it states that I have to give the income that I made from self employment. I calculated my gross earnings from Jan 09 (approx €25k) and put this gross amount on the form. What I failed to do was state that this was GROSS income and all of my expenses would be taken from that. I would have had a number of expenses from Jan to Aug like large mobile bills, room used in my house as an office, petrol etc so my income should be a good bit lower than the €25k when my relevant expenses have been deducted.

The second question I have is in relation to the TRCN1 form. I just read that I need to de-register from self employment. I have not done this yet so do I simply fill out this form and return it to the tax office.

I have already filed and paid my 2008 return and 2009 prelim. Is there a chance that my PAYE income could be all over the place when I get paid at the end of September because I was self employed for 7 1/2 months of the year or is it a simple process.

Cheers in advance.

Legend100

Wiggles wrote: »

I have already filed and paid my 2008 return and 2009 prelim. Is there a chance that my PAYE income could be all over the place when I get paid at the end of September because I was self employed for 7 1/2 months of the year or is it a simple process.

Unfortunately i would say that it may be all over the place because it is unlikely that the person in HR will pick have queried the 25K and will assume this was ur gross to date for the first seven months. i would contact them straight away or you could be hit with a fairly hefty tax deduction in the first pay cheque you get. (ie i would think that your gross to date would be 25k which would put you into the 41% bracket at the 7 month mark if you are single)

You say you filed your 2008 return, did you get an accountant to do this as it would be a cessation situation which has specific income tax implications for the preceding year (ie 2008 in this case as you ceased in 2009)

Wiggles

Thanks Legend100 for the prompt reply.

The girl in HR didn't ask one question so you are probably right.

My accountant filed my 2008 returns and gave me a rough figure for my prelim for 2009. Both have been paid to the Revenue already.

Just wondering if you could clarify the cessation situation and what the specific income tax implications are.

Thanks again.

Legend100

the reason i was asking about whether u got an accountant to do it was i was wondering when your 2008 return was filed. If it was after you finished up your trade, your accountant could have determined your cessation taxable income and done the appropriate adjustments (if necessary) then.

First of all, what was your accounting year end? if it was december, it makes things a bit easier to explain.

In your cessation year (2009) your taxable period will be from jan to the date of cessation.

Then you will have to do a prior year review for 2008. if you have prepared a 12 month jan - dec set of accounts then it won't make any difference to the taxable profits. If for example you had a june year end of accounts, you would have to do a revision on what is called an "actual" basis.

Given that you had until next Oct to file your 2008 return, there may have been a wndow for some tax planning to choose the best time to cease trading but this option is more than likely out of the Q now as if you do an ammended return, it may look suspicious

il explain the cessation rules in full, just need to know your accounting yr end for 2008 first (if its jan-dec, then there is no point in giving you the longer calculation)