Sudden Tax bill

the optimist

I have received from the revenue a tax bill out of the blue for 1500 euro. 750 for 2007 and 750 for 2008. When I rang the tax office I was originally told that the there was a mistake made back in 2002 with my husbands tax credits. When My husband rang the following day he was told that I had underpaid tax in 2007. In 2007 and 2008 I was self employed and had for both years tax clearance issued. I have questioned it with my accountant and he has told me that he gave the information and he can do no more. I have asked for clarification with the revenue and they are not giving me any reasonable explanation. I have today being given a reminder and given two weeks to pay., We dont have this kind of money. Can I appeal and if so how do I appeal. I feel like this figure has being pulled out of the sky and we are being forced to pay for something with no proper explanation. Is there anything we can do. Please help. We have just got ourselves above water and dont need this.

Kristopherus

If the accountant told me what he told you I would shoot him:) You are probably paying him very good money, so make him work for it. He should be shouting at Revenue as to why they issued 2 Tax Clearance Certs and now land you with 2 estimates. If he,s not prepared to do that for you. withdraw your business from him. If he refuses to do anything for you, I would advise you go to the Tax Office in person with the Tax assessments for 2007 & 2008 with you. Don't be agressive, they really are very nice people, and are more than willing to genuinely help people Hopefully you will get what you want to hear. Best of luck.

mkdon05

yea shoot the accountant:rolleyes: Unhelpful advise.
OP call the revenue and ask them to send you out an Income tax assessment for each year. This will detail their calculations. Ask the accountant for a copy of the income tax return filed with revenue for these years and compare them.

the optimist

Thanks for the reply. I was planning on calling in to the accountant tomorrow as I gave him the tax clearances certs so I will talk to him again. I think the reason he wont help me now is that i am now working and on PAYE so he knows I dont need him anymore.I paid him 600 per year to sort out my taxes. I made a loss on both years which is why I am not self employed anymore. I am frustated with this and need to sort it out. I will ask him again to sort it out for me. Thats why I left it till now I thought he sorted it for me but obviously not...

the optimist

Thanks so much for your replies and help. I really appreciate it. I know now what to ask for tomorrow. I will let you know how I get on. I might be able to sleep easier now

Kristopherus

mkdon05 wrote: »

yea shoot the accountant:rolleyes: Unhelpful advise.
OP call the revenue and ask them to send you out an Income tax assessment for each year. This will detail their calculations. Ask the accountant for a copy of the income tax return filed with revenue for these years and compare them.

If you were in the OPs situation, you might feel differently. The Tax Office send out assessments at the end of each tax year, usually within a month of accounts being submitted. Any accountant worth their salt will carry out any and all negotiations with Revenue, and they usually include that in their fee.

the optimist

Kristopherus wrote: »

If you were in the OPs situation, you might feel differently. The Tax Office send out assessments at the end of each tax year, usually within a month of accounts being submitted. Any accountant worth their salt will carry out any and all negotiations with Revenue, and they usually include that in their fee.

I am confused now, you ve lost me. are you saying that the accountant wont carry out any negotiations with the tax office because he is not working for me anymore. Should I ask him to carry out negotiations on our behalf for a fee, is that what you mean. Do you think he will give me a copy of the tax returns. Please explain what you mean

barneystinson

the optimist wrote: »

Can I appeal and if so how do I appeal. I feel like this figure has being pulled out of the sky and we are being forced to pay for something with no proper explanation. Is there anything we can do. Please help. We have just got ourselves above water and dont need this.

You certainly can appeal, and I'm pretty sure it says on the bottom of the assessment that you may appeal the assessment within 28days by giving notice in writing. It all gets quite formal then though, so I would agree with Kristopherus - just get yourself down to the customer service counter at your local office and bring whatever correspondence you have with you, and don't leave til you understand why / how this liability has arisen. The staff are always helpful, so you shouldn't have any problem getting an explanation...

barneystinson

the optimist wrote: »

I am confused now, you ve lost me. are you saying that the accountant wont carry out any negotiations with the tax office because he is not working for me anymore. Should I ask him to carry out negotiations on our behalf for a fee, is that what you mean. Do you think he will give me a copy of the tax returns. Please explain what you mean

He's unlikely to carry out any further work for you than he already has, without being paid.

He should have given you a copy of the tax returns he filed on your behalf, and if not he certainly has to give them to you now - free of charge.

And I certainly wouldn't be going to pay him to do any negotiating on your behalf until you get a straight answer from Revenue about what this liability relates to - it may be the case that it's simply not something that can be negotiated on.

the optimist

barneystinson wrote: »

He's unlikely to carry out any further work for you than he already has, without being paid.

He should have given you a copy of the tax returns he filed on your behalf, and if not he certainly has to give them to you now - free of charge.

And I certainly wouldn't be going to pay him to do any negotiating on your behalf until you get a straight answer from Revenue about what this liability relates to - it may be the case that it's simply not something that can be negotiated on.

You are right about the right to appeal it was on the original letter but because I left it with the accountant I thought he would sort it out and its about 3 months now so prob to late to appeal. I will call in to the accountant first tomoro and ask for the tax clearances statements that I left with him and then go to tax office to try and sort it out. I wouldnt mind but since then I was out of work for two years and only back to work now. we are already paying thru the nose to tax more since january. dont know how we are going to pay this back. If it is based on 2002 surely they cant look for that now. is there not a time limit

barneystinson

the optimist wrote: »

You are right about the right to appeal it was on the original letter but because I left it with the accountant I thought he would sort it out and its about 3 months now so prob to late to appeal. I will call in to the accountant first tomoro and ask for the tax clearances statements that I left with him and then go to tax office to try and sort it out. I wouldnt mind but since then I was out of work for two years and only back to work now. we are already paying thru the nose to tax more since january. dont know how we are going to pay this back. If it is based on 2002 surely they cant look for that now. is there not a time limit

It can't be related to 2002, simple as. Because 1) yes, there is a time limit, and 2) you said in your OP that the amended assessments were for 2007 and 2008. So those are the years that the problem, whatever it is, arose in.

It sounds to me like you've been fobbed off from all sides so far, so you need to be a bit more assertive, and make them make you understand what's going on!

If the amount is the exact same for both years then it suggests that they may withdrawn a particular tax credit / relief that was claimed but that you weren't entitled to, but from looking back at the chart of tax credits for those years I don't see what it is...

Also, forget about the tax clearance certs, they are irrelevant in this context; all they were was confirmation from Revenue that at a particular point in time, as far as they could tell, you were fully compliant. All that is relevant is whatever adjustment they've made, so you need to see your original assessment and the amended one, and an explanation of the difference.

Kristopherus

the optimist wrote: »

I am confused now, you ve lost me. are you saying that the accountant wont carry out any negotiations with the tax office because he is not working for me anymore. Should I ask him to carry out negotiations on our behalf for a fee, is that what you mean. Do you think he will give me a copy of the tax returns. Please explain what you mean

You seem to have lost confidence in him now, so you should go to the local Tax Office yourself. They will not bite you!!! I had assumed you were still with him. In any case he should provide all the evidence you require for the Tax Office.I'm going from my own experience. In the bill I get there is a reference to "completing books of account and submitting same to the Tax Inxspector. Completing and submitting Form 11 and providing any necessary explanations to same"

I pay a fine fat fee for all that. And though my turnover dropped over the past 2 years I got only €25 of a reduction this year:mad:

the optimist

I do remember receiving books of accounts etc but stupidly when the business finished I binned all paperwork assuming I was up to date with tax etc...I know I hold my hands up I will get a copy of everything tomoro from my accountant and I will talk to them in the tax office. I was originally told that it was a mistake in 2002 and they have carried it forward to 2007. I think this is what happened but they are now saying something else to cover this up. I will also see can I make any other claims that might bring this figure down. I am clutching at straws now.
Surely when I get a copy of the tax returns this should clarify it for them. I will not be leaving the tax office tomorrow without an explanation

Kristopherus

Keep us updated, please. Best of luck.

the optimist

Ok here is what they have said. i will try and explain as best as I can. In 2002 my husband made an underpayment in tax. This was to be rectified in 2006, 2007 and 2008 with tax credits but because I opened a clothes shop in 2007, I was self employed. My accountant made the returns online and this underpayment was missed. There is a question online if an underpayment was ever made and he said no.I closed the shop in 08. We werent aware of any underpayment and 2002 is so long ago. I cant even remember what our wages were like. the tax man CAN go back 10 years but you cant make a claim for 10 years ago. I have registered online and waiting for a pin number and as soon as I get the pin number I am going to make a claim for medical dentist and bins. I will claim for whatever I am entitled to.....try and clear the balance owed

barneystinson

the optimist wrote: »

Ok here is what they have said. i will try and explain as best as I can. In 2002 my husband made an underpayment in tax. This was to be rectified in 2006, 2007 and 2008 with tax credits but because I opened a clothes shop in 2007, I was self employed. My accountant made the returns online and this underpayment was missed. There is a question online if an underpayment was ever made and he said no.I closed the shop in 08. We werent aware of any underpayment and 2002 is so long ago. I cant even remember what our wages were like. the tax man CAN go back 10 years but you cant make a claim for 10 years ago. I have registered online and waiting for a pin number and as soon as I get the pin number I am going to make a claim for medical dentist and bins. I will claim for whatever I am entitled to.....try and clear the balance owed

I've sent you a PM Optimist... You can claim for 2007/08/09/10