Seriously worried, am I in serious trouble??

timeforachange

Guys please bare with me as I am one seriously stressed and panicked girl right now.... although admittedly I know its all of my fault.

Basically, I started self employment mid Oct 2010 and finished August 2011.

For some reason I had it in my head that I didn't have to worry about my taxes until Oct 2012 but now I'm starting to doubt this.


Can anyone please advise me on where I stand? I have ROS set up and my income for 2010 is very straight forward (less than €10,000 altogether and only €4000 was actually through the self employment).


Can someone just tell me am I supposed to be filing returns this year? Will I be in serious trouble?! If I am, is it too late to go running to an accountant and will I have a serious fine? OR is this something I could manage myself on ROS since income was so low?!

apologies for the stressed tone, just very worried.

srsly78

You have 3 days to file a form11 I think, gogogo. It should contain details of your self-assessed income for ALL of 2010.

But yeah, talk to an accountant. You can do the filing yourself, but get accountant to confirm what you need to declare etc.

Worst case scenario: You get fined for filing a late return. Fine is a % of what you owe, you owe **** all so don't worry about it too much

edit: Some people say you have an extra year, not sure. I started in jan 2010, and I certainly have to file for 2010 self-assessment now.

timeforachange

srsly78 wrote: »

You have 3 days to file a form11 I think, gogogo. It should contain details of your self-assessed income for ALL of 2010.

But yeah, talk to an accountant. You can do the filing yourself, but get accountant to confirm what you need to declare etc.

Worst case scenario: You get fined for filing a late return. Fine is a % of what you owe, you owe **** all so don't worry about it too much

Do you happen to know how much % the fine is? I'm trying not to worried but I am about to burst into tears, I'm not the type of person who likes owing money to people but at the same time I know this i my own fault hence why I'm so mad at myself!

Do I definitely have to have this sorted by Wednesday then? Life is unbelievably busy for me this week due to unfortunate personal reasons and I just don't know how on earth I'm going to get to an accountant as really and truely I've only got today to sort this....

Can anyone point me in the right direction regarding how to work out my taxes maybe? I wouldn't have any VAT nor would I have had any employees etc. to pay PRSI for so its just myself. I worked as a private tutor so just my earnings are concerned...

srsly78

15th of Nov is deadline for ROS filing. This gives you time to talk to accountant on monday and make the filing, it's not that complicated. You should be able to do it over the phone. Try asking any friends/family for accountant recommendation. Don't leave it till last moment next year.

www.taxcalc.eu to calculate what you owe

timeforachange

srsly78 wrote: »

15th of Nov is deadline for ROS filing. This gives you time to talk to accountant on monday and make the filing, it's not that complicated.


www.taxcalc.eu to calculate what you owe

Thanks for your help. Am I using that calculator incorrectly or does that not work for employees only? I can't seem to work out how to get self employment tax on it?

srsly78

There is no difference. Just put in your figure (10000 for the year). You did pay some paye you indicated, so you get paye tax credit.

So, look at the totals for tax due in that calculator. Then subtract what you have already paid via paye, what is left over is what you owe for self-assessment roughly.

If you overpay you can get the money back later.

Download the excel version linked in topright of webpage, it's much clearer.

timeforachange

srsly78 wrote: »

There is no difference. Just put in your figure (10000 for the year). You did pay some paye you indicated, so you get paye tax credit.

So, look at the totals for tax due in that calculator. Then subtract what you have already paid via paye, what is left over is what you owe for self-assessment roughly.

If you overpay you can get the money back later.

I'm so sorry for annoying you again, its just from what I see its telling me I owe nothing. I earned under €5000 as PAYE and just under €4000 self employed so surely I owe something on the self employment?

kennyb3

srsly78 wrote: »

15th of Nov is deadline for ROS filing. This gives you time to talk to accountant on monday and make the filing, it's not that complicated. You should be able to do it over the phone. Try asking any friends/family for accountant recommendation. Don't leave it till last moment next year.

www.taxcalc.eu to calculate what you owe

Deadline is now the 16th by the way

srsly78

timeforachange wrote: »

I'm so sorry for annoying you again, its just from what I see its telling me I owe nothing. I earned under €5000 as PAYE and just under €4000 self employed so surely I owe something on the self employment?

Just put in 9000 in total. What is total tax owed on that? Subtract the paye you already paid, remainder = your answer. Probably very little indeed. Note again, this is a rough estimate. It will overestimate I'm pretty sure but better to overpay than underpay (no fine). You get extra tax credits for rent/mortgage/bincharges and stuff like that too.

Again: talk to an accountant. This will give you peace of mind, no info on boards is gonna substitute for that.

augusta24

srsly78 wrote: »

Just put in 9000 in total. What is total tax owed on that? Subtract the paye you already paid, remainder = your answer. Probably very little indeed.

Its saying 0 for the total tax owed, unless I'm doing something wrong?

srsly78

Looks right to me. It says 1800 tax, which is wiped out by your tax credits. Am just unsure how the paye tax credit gets handled when there is paye+self assessed.

There is a box on the form 11 for "uncertainty" too

One would indeed hope that someone earning less than the dole would not be liable for tax.

If you paid any PAYE you should get a refund.

augusta24

srsly78 wrote: »

Looks right to me. It says 1800 tax, which is wiped out by your tax credits. Am just unsure how the paye tax credit gets handled when there is paye+self assessed.

There is a box on the form 11 for "uncertainty" too

One would indeed hope that someone earning less than the dole would not be liable for tax.

If you paid any PAYE you should get a refund.

I agree but I have a feeling I owe PRSI of about 3% which is not a lot at all, but then I think I have to pay the higher amount of €253... I know its not a lot to people but to me its important I get it sorted as I just don't want any trouble. I am finding the ROS quite difficult to get my head around though and I just don't understand why REVENUE can't make it a little more user friendly although maybe its just me :-/

I'm going to call both revenue and an accountant tomorrow... will probably end up paying more in accountant fees than the actual tax!!

srsly78

ROS isn't complicated. The form11 is complicated whether you file it online or offline.

timeforachange

srsly78 wrote: »

ROS isn't complicated. The form11 is complicated whether you file it online or offline.

I think it must just be me so :rolleyes: I don't have any accounts etc. as I just earned a standard rate for a standard amount of hours so just have all my incoming earnings recorded but no out goings etc. and it's insisting that I provide my accounts lol

srsly78

The form11 doesn't ask for accounts, it asks for your total income and total expenses (and other totals relating to other income from property etc, and stuff like pensions). Most of the boxes will probably have zero in them. I had to fill this in myself and my income is 100% paye so you can imagine how I feel.

Are you sure you are filing the right thing? You are not filing accounts for a business here. You are filing form11 for self-assessment right?

barneystinson

srsly78 wrote: »

You have 3 days to file a form11 I think, gogogo. It should contain details of your self-assessed income for ALL of 2010.

But yeah, talk to an accountant. You can do the filing yourself, but get accountant to confirm what you need to declare etc.

Worst case scenario: You get fined for filing a late return. Fine is a % of what you owe, you owe **** all so don't worry about it too much

edit: Some people say you have an extra year, not sure. I started in jan 2010, and I certainly have to file for 2010 self-assessment now.

WHOA!!

Stall the digger there lads. A person who commences in trade and only becomes a self-assessment taxpayer during 2010, has until 31st October 2012 to file their first return. (At this point they will also need to file their 2011 return as well.)

http://www.revenue.ie/en/tax/it/leaflets/it48.pdf (page 7-ish)

You are still obliged to PAY your tax liability for 2010 by now, but you need not actually file your return until 2012...

smeharg

barneystinson wrote: »

srsly78 wrote: »

You have 3 days to file a form11 I think, gogogo. It should contain details of your self-assessed income for ALL of 2010.

But yeah, talk to an accountant. You can do the filing yourself, but get accountant to confirm what you need to declare etc.

Worst case scenario: You get fined for filing a late return. Fine is a % of what you owe, you owe **** all so don't worry about it too much

edit: Some people say you have an extra year, not sure. I started in jan 2010, and I certainly have to file for 2010 self-assessment now.

WHOA!!

Stall the digger there lads. A person who commences in trade and only becomes a self-assessment taxpayer during 2010, has until 31st October 2012 to file their first return. (At this point they will also need to file their 2011 return as well.)

http://www.revenue.ie/en/tax/it/leaflets/it48.pdf (page 7-ish)

You are still obliged to PAY your tax liability for 2010 by now, but you need not actually file your return until 2012...

You don't need to pay anything either. Revenue recommends you make a payment in order to ease cash flow pressures in the following year, but they would say that.

Kristopherus

OP, forget about Ros at this stage. It will take 7 to 10 days to actually get the registration fully set up. Bear in mind that at this time of year the Ros system and the staff are on meltdown with the workload. Something like 85% of self-employed tax is now pai at the last minute through Ros. So they will have very little time to register new applicants.
Your best option would be to look up and make an appointment with a reliable Book-keeper rather than an Accountant. Google for one in your area.An accountant will charge a minimum of €500 as the timescale is very tight.A good Bookkeeper will cost less than half that.And they will be able to advise you fully on your obligations. Form the figures you have given , you may not have to pay any tax. But you will have to pay the new USC charge on your gross income. That will be 4% of your turnover.
Get cracking on a Bookkeeper straight away. You only have until next Wednesday. Best of luck.

barneystinson

smeharg wrote: »

You don't need to pay anything either. Revenue recommends you make a payment in order to ease cash flow pressures in the following year, but they would say that.

Commencement does not affect the payment dates, only the dates for filing of returns. If you have a look at the relevant part of IT10 it refers to filing dates, not payment dates.

IT48 outlines it as follows:

"You started in business on 1 July 2006 during the tax year 2006. Payment and Return Filing dates will be as follows:

• Preliminary Tax for 2006 due on or before 31 October 2006,
• Preliminary Tax for 2007 due on or before 31 October 2007,
• Balance of tax due for 2006 must be paid on or before 31 October 2007,
• Tax returns for 2006 and 2007 to be submitted on or before 31 October 2008."

On your other point, surely its a matter of common sense that a person should be advised not to end up in a situation whereby they have to pay 3 years tax liabilities together (2010, 2011 & prelim 2012)...

barneystinson

Kristopherus wrote: »

OP, forget about Ros at this stage. It will take 7 to 10 days to actually get the registration fully set up. Bear in mind that at this time of year the Ros system and the staff are on meltdown with the workload. Something like 85% of self-employed tax is now pai at the last minute through Ros. So they will have very little time to register new applicants.
Your best option would be to look up and make an appointment with a reliable Book-keeper rather than an Accountant. Google for one in your area.An accountant will charge a minimum of €500 as the timescale is very tight.A good Bookkeeper will cost less than half that.And they will be able to advise you fully on your obligations. Form the figures you have given , you may not have to pay any tax. But you will have to pay the new USC charge on your gross income. That will be 4% of your turnover.
Get cracking on a Bookkeeper straight away. You only have until next Wednesday. Best of luck.

Emmmmmmmmmm, try reading all of the thread... She has approximately a year & 3 days!

smeharg

barneystinson wrote: »

smeharg wrote: »

You don't need to pay anything either. Revenue recommends you make a payment in order to ease cash flow pressures in the following year, but they would say that.

Commencement does not affect the payment dates, only the dates for filing of returns. If you have a look at the relevant part of IT10 it refers to filing dates, not payment dates.

IT48 outlines it as follows:

"You started in business on 1 July 2006 during the tax year 2006. Payment and Return Filing dates will be as follows:

• Preliminary Tax for 2006 due on or before 31 October 2006,
• Preliminary Tax for 2007 due on or before 31 October 2007,
• Balance of tax due for 2006 must be paid on or before 31 October 2007,
• Tax returns for 2006 and 2007 to be submitted on or before 31 October 2008."

On your other point, surely its a matter of common sense that a person should be advised not to end up in a situation whereby they have to pay 3 years tax liabilities together (2010, 2011 & prelim 2012)...

Sorry for the confusion. Based the info provided by OP it's unlikely he'll have a liability for 2010. Preliminary tax for 2011 can either be 100% of the 2010 liability or 90% of the estimated 2011 liability. So, in this case no preliminary tax is required in order to be fully compliant.

It may make sense to some people to make a payment now to ease the cash flow burden next year. Others may need the cash now, or, what I usually advise, prefer to put it in a separate deposit account so it be can accessed if required. Once you pay it to revenue it's gone.

It's also important to note that although the example you quote states that the PT due date for 2006 is 31 Oct 2006, no payment is necessary using the 100% of previous year liability rule.