self assessment query

the_galwegian

Hi,

I'm returning my tax forms and i'm not sure on one thing.

My income from self employment last year to May was roughly €8,500 then i went on the live register. My expenditure was about €2,500, leaving me with €5,500. Now am i right in saying that the 20% income tax from that, €1,100, i don't have to pay because i have €1,860 tax credits. But i do have to pay the minimal €253 PRSI.

Any advice really appreciated here. I'm struggling a bit making sense of it all.

thanks
p

tinofapples

the_galwegian wrote: »

Hi,

I'm returning my tax forms and i'm not sure on one thing.

My income from self employment last year to May was roughly €8,500 then i went on the live register. My expenditure was about €2,500, leaving me with €5,500. Now am i right in saying that the 20% income tax from that, €1,100, i don't have to pay because i have €1,860 tax credits. But i do have to pay the minimal €253 PRSI.

Any advice really appreciated here. I'm struggling a bit making sense of it all.

thanks
p

The €253 PRSI sounds about right to me. You haven't earned enough to pay any tax unless you had another source of income of top of this.

DoMyBooks

Your calculations look correct. Just bear in mind you may have to put your social welfare income on the F11 too.

the_galwegian

thanks fellas

DoMyBooks wrote: »

Your calculations look correct. Just bear in mind you may have to put your social welfare income on the F11 too.

Do i just have to declare it or will it have any effect on my taxable income?

I was literally about to post it off there...envelope sealed and all!!!!!

DoMyBooks

Job seekers benefit is taxable and job seekers allowance isn't taxable. Nice guide here
http://www.losingyourjob.ie/money-and-tax-issues/taxation_of_social_welfare_payments.html

I haven't filled in a paper F11 in years but on ROS the section heading is "PAYE/BIK/ Pensions" and I've attached a screenshot of the area on the form they go.

Hope this helps.

the_galwegian

DoMyBooks thanks a million. I have it sussed now and i can finally send off the form. It's been looming on my desk for too long. Thanks again!!!

the_galwegian

ah thanks DoMyBooks. That was just what i needed. I have it sussed now and i can finally send off the form. It's been looming on my desk for too long. Thanks again!!!