Taxation Form 11

supergroove

Hi

Perhaps someone can help me?

I am currently working on filling out my Form 11 as I am a sole trader.

Does anyone know if my tax liability should reduce when I add my expenses. I am referring to motoring and other business expenses on the 'Self Employed Income' page. My Allowances / Reliefs / Deductions come to 0 on the Calculate page and I thought my expenses might accumulate to something and bring down my liability. The only thing taking down my tax bill is when I add something to Plant and Machinery - I have some equipment which I have 12.5 percent of added.

Many thanks,

Alan.

Clogsworth

Your taxed on your profit which will be your income less your expenses (such as motor, insurance etc.). This goes in the section for self employed income - Schedule D case I/II. Then there is another section, which I think you are referring to, which is where you put in the details of what your profit is made up of. But the actual tax will be calculated on what your profit is less the capital allowances.
Is this what you are asking or have I taken the question up wrong??

supergroove

Thanks a lot Clogsworth! I see it now - I do not have the correct figure for my profit, so. I need to firstly subtract my expenses from my gross turnover, as such, and then insert that figure. I was misinterpreting profit for turnover, thinking that the ROS application would do the maths as it does with your refuse charges, etc.

Thanks, again!

ebbsy

Without being smart you shoud get yourself an accountant to do that return for you.

crebel81

ebbsy wrote: »

Without being smart you shoud get yourself an accountant to do that return for you.

Rememeber Ebbsy, we are in a recession and some business people cannot afford to pay an accountant a small fortune for an hours work....

Toblerone1978

crebel81 wrote: »

Rememeber Ebbsy, we are in a recession and some business people cannot afford to pay an accountant a small fortune for an hours work....

Ebbsy advice is sound. From the OP, it's obviously that the poster is out of his depth doing his own tax return.

I can't really afford a plumber in this recession but if a pipe burst, I know it's not going to fix itself, nor am I going to be able to do it myself. What's the alternative?

Clogsworth

To be fair if you just have a straight forward income and expenditure account you don't need to pay a fortune to an accountant to get it done!
The majority of the Form 11 won't be relevant if you just have income from one or two sources and maybe a few medical expenses , bin charges etc.
The Revenue website is also very good for explaining how to fill out the form too so I definitely do not see the need to pay a few hundred euro for a basic tax return!

kennyb3

crebel81 wrote: »

Rememeber Ebbsy, we are in a recession and some business people cannot afford to pay an accountant a small fortune for an hours work....

The knowledgeable person might end up saving you more than they cost you. People overlook items all the time or make a mess of them. Scroll down through the forum and you ll see this.

A small fortune for an hour? Not everybody charges extortionate rates, there is plenty of value to be had.

You might also remember that the accounts fee is tax deductible - so in rela terms it may be far cheaper than it looks.

Toblerone1978 wrote: »

Ebbsy advice is sound. From the OP, it's obviously that the poster is out of his depth doing his own tax return.

I can't really afford a plumber in this recession but if a pipe burst, I know it's not going to fix itself, nor am I going to be able to do it myself. What's the alternative?

And I agree with this. It's evident when someone is capable of filing out a return but just needs a question or two answered and its also evident when they are out of their depth. If they have to ask very basic questions imagine the complex stuff they are missing.

Accountants are there to take the worry and hassle out of tax returns etc. A good one is like an insurance policy in that you feel safer and more comfortable standing over the return tahts sent in rather than hoping you got it right.