Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Unable to pay tax

Options
  • 22-10-2009 11:41pm
    #1
    R169
    Closed Accounts Posts: 16 ✭


    I'll give a bit of background first.
    Became self employed in Sep 07 and remained so until Aug 09. I reckon i owe approx €11k for 2008 (prelim paid for 08 was 100% of 2007's liability which was only €1300.) + prelim for 2009 which wont be much because earnings were poor (im expecting roughly €4k). I reckon ill owe €15k in total.
    Problem is i dont have it to pay. Ive about €4k in the credit union, but because ive defaulted a few times on my car loan my credit rating is poor so its unlikely the credit union will give me the money i need to pay the taxes. Im surrendering the car to the bank next week because i cant afford to keep it. Im back in a PAYE job since august but im earning the bare minimum i need to cover mortgage, pay bills, feed kids etc.
    Anyone any ideas. I cant afford an accountant so ill be doing my own return on the ros system. Ill use the paylesstax.ie website to calculate it first.
    What sort of penalties am i likely to face, im sure there must be a lot of people in similar or worse situations than i am but im genuinely fearful of losing my house or something.
    Any advice or information would be much appreciated.


Comments

  • Options
    #2
    Dixie Chick
    Registered Users Posts: 1,062 ✭✭✭Dixie Chick


    Hello

    Firstly Im sorry for your troubles its a stressful situation and I would not want to be in your shoes.

    Have you spoken to the Revenue about your situation. If so have they offered an instalment agreement. Could you manage from your CU savings a down payment of 20% and then a smaller amount over the 24 months.


  • Options
    #3
    dbran
    Moderators, Business & Finance Moderators Posts: 2,094 Mod ✭✭✭✭dbran


    Dixie Chick wrote: »
    Hello

    Firstly Im sorry for your troubles its a stressful situation and I would not want to be in your shoes.

    Have you spoken to the Revenue about your situation. If so have they offered an instalment agreement. Could you manage from your CU savings a down payment of 20% and then a smaller amount over the 24 months.

    I would add to what Dixie Chick said by saying do not file the return late. Make sure you file something by 31 october as otherwise a late filing surcharge of 5-10% on the whole tax is likely.

    dbran


  • Options
    #4
    R169
    Closed Accounts Posts: 16 ✭R169


    Dixie Chick wrote: »
    Hello

    Firstly Im sorry for your troubles its a stressful situation and I would not want to be in your shoes.

    Have you spoken to the Revenue about your situation. If so have they offered an instalment agreement. Could you manage from your CU savings a down payment of 20% and then a smaller amount over the 24 months.

    Hi. Thanks for the response. No i havent been speaking with revenue as of yet. Im hoping the credit union will lend me the money i need to dig myself out of the hole im in, but with the defaults on the car loan this year my credit rating is going to be poor so they more than likely will not lend to me. The car is going back this week so that is at least one less debt to worry about but for the first time ever i havent a breeze what to do.

    Dbran - ill make sure the return is filed by the 31st Oct. What do i do then. Do i ring them and explain im not in a position to pay or do i write to them and try request a meeting or do i wait for them to contact me looking for the payment.


  • Options
    #5
    dbran
    Moderators, Business & Finance Moderators Posts: 2,094 Mod ✭✭✭✭dbran


    R169 wrote: »
    Dbran - ill make sure the return is filed by the 31st Oct. What do i do then. Do i ring them and explain im not in a position to pay or do i write to them and try request a meeting or do i wait for them to contact me looking for the payment.

    I would ring them and explain your situation to them. They can offer an installment arrangement but they will most likely want to receive a deposit up front of about 20-30%. You could then try to bargain them down on this but set up a plan to pay it off at a rate that is feasible to you and most importantly stick to it. Revenue do not usually go over 2 years on installments but they may be more flexible nowadays.

    dbran


  • Options
    #6
    R169
    Closed Accounts Posts: 16 ✭R169


    dbran wrote: »
    I would ring them and explain your situation to them. They can offer an installment arrangement but they will most likely want to receive a deposit up front of about 20-30%. You could then try to bargain them down on this but set up a plan to pay it off at a rate that is feasible to you and most importantly stick to it. Revenue do not usually go over 2 years on installments but they may be more flexible nowadays.

    dbran

    Thanks for the quick response. Ill sit down over the course of the week and get all the figures done up in time for the 31st and then see where it goes from there. Ive a meeting in the Credit Union tomorrow so hopefully ill know a bit more then.
    Im just praying the Credit Union can sort me out.


  • Advertisement
Advertisement