Tax returns - query

teachertrixibel

Hi there,

I need to complete a tax return this October. My accountant has suggested that as well as paying my 2010 tax liability I also have to pay the same amount again as an advance payment for my 2011 liability - I haven't heard of this before - is it true :eek:???

Thx
TT

Legend100

Yes, this is called paying preliminary tax and you can be liable to interest and penalties if you do not pay enough prelim tax on time

Ther are different methods of calculating how much to pay but the usual amount is 100% of the prior year liability

See http://www.revenue.ie/en/tax/it/leaflets/it10.html#section4

teachertrixibel

ah ok... Thx a million!

TT

daveocinneide

90% of 2010 or 100% of 2009 whichever is lower afaik.

barneystinson

daveocinneide wrote: »

90% of 2010 or 100% of 2009 whichever is lower afaik.

It's 90% of the current year liability, so in Oct 2011 it'd be 90% of the 2011 liability (which may not yet be known), or 100% of the previous year's liability, i.e. 100% of the 2010 liability, as per the OP's original advice.

Birdfood

As far as I'm aware if it's your first time in the self assessment system , you have until the file and return deadline of your 2nd tax year to make your first return ie. if you 1st registered for income tax in 2010, your 1st tax return is due in 2012 ( by 31st Oct) and it is not required for you to pay preliminary tax unless you voluntarily wish to do so. Check with the registrations dept. in your local tax office.