Accountancy error?

Sazriellen

Hi all
my partner is unemployed and has qualified for JSA, he was self employed.
Our accountant did our end of year return for 09, recently in order to offset what we owed revenue against money due back to us. In the return he put down that partner had 4000 in earnings for 09 and put him down for 52 S class prsi returns???? I called him when I saw the return and asked what this was about as partner hasnt earned ANY money in 09-did take money from business account to help keep us going as no SW benefit for a long time, but showed this money to sw inspector who did means test as being in the account. Why in gods name did he pay 52 s class returns when parnter isnt working? SW have now contacted us to ask us about the prsi paid and the amount of so called 'earnings' ?
I have rang him and rang him and forwarded on the details needed by SW but he wont call me back?

dbran

Hi

If you were self employed for the whole year then you would pay for 52 weeks PRSI at the S rate. Even if the amount of income earned was small at say €4000.

However if this income has previously been declared to the SW then it should not be a problem as you say you have been means tested before.

You should note that as a sole trader, the amount of money that you take out of the business (drawings) can be totally different from the amount of income (profit) earned by the business in the year. You are taxed on profits and not on drawings.

So it may not be an accounts error.

Kind Regards

dbran