Business name owner only, Tax Return. Why?

Decorus

Hi guys,

Hope this is the right forum to place my question.
I am a business name owner for the last 3 years, however I was never registered for VAT or being self-employed.

I registered business name and never traded so far as I am involved in different activities. Suddenly today I received Return of Income for 2011 on my name. I’ve never received it before.

My question is whether business name owners obliged to file an annual tax return?

Thanks to everybody!

barneystinson

Decorus wrote: »

Hi guys,

Hope this is the right forum to place my question.
I am a business name owner for the last 3 years, however I was never registered for VAT or being self-employed.

I registered business name and never traded so far as I am involved in different activities. Suddenly today I received Return of Income for 2011 on my name. I’ve never received it before.

My question is whether business name owners obliged to file an annual tax return?

Thanks to everybody!

That does seem strange, is it a Form 11 or a Form 12?

If it's a Form 11 you should have received a notification to tell you you're now registered for income tax at some point in the last 17months... if you haven't actually begun a trade, and do not otherwise fit the criteria to be a "chargeable person", then if you contact the tax office they can deregister you and you won't have to file a return.

If it's a Form 12 you'll have to complete it - you'll note it says "This Tax Return should be completed by a person whose source of income is from a PAYE employment or pension or by a non – proprietary company director who pays all his/her Income Tax under the PAYE system." Revenue send out this form to a certain number of taxpayers every year.

You'll also not that it says:
"NOTICE: YOU ARE HEREBY REQUIRED, UNDER SECTION 879 TAXES CONSOLIDATION ACT 1997, BY THE INSPECTOR OF TAXES NAMED ABOVE TO PREPARE AND DELIVER, ON OR BEFORE 31 OCTOBER 2012, A TAX RETURN ON THIS PRESCRIBED FORM FOR THE YEAR 1 JANUARY 2011 TO 31 DECEMBER 2011."

J.Ryan

Decorus wrote: »

.....I am a business name owner for the last 3 years, however I was never registered for VAT or being self-employed.

I registered business name and never traded so far as I am involved in different activities.....

The Registrar of Business Names does not allow you to pre-register a name, you (on the registration form) declare the date that you started using the name.

I imagine that the computer systems are now being intergrated to catch things like this.

You can file the return, if you are an PAYE worker and just put nil's on the self employed section and complete the relevant sections of the rest of the form. If the Revenue sent out the form they will expect to get it back, it will be simpler to complete the form and go into one of the public offices with it and explain it to the person there, than to not submit it.

Decorus

barneystinson wrote: »

That does seem strange, is it a Form 11 or a Form 12?

If it's a Form 11 you should have received a notification to tell you you're now registered for income tax at some point in the last 17months... if you haven't actually begun a trade, and do not otherwise fit the criteria to be a "chargeable person", then if you contact the tax office they can deregister you and you won't have to file a return.

If it's a Form 12 you'll have to complete it - you'll note it says "This Tax Return should be completed by a person whose source of income is from a PAYE employment or pension or by a non – proprietary company director who pays all his/her Income Tax under the PAYE system." Revenue send out this form to a certain number of taxpayers every year.

You'll also not that it says:
"NOTICE: YOU ARE HEREBY REQUIRED, UNDER SECTION 879 TAXES CONSOLIDATION ACT 1997, BY THE INSPECTOR OF TAXES NAMED ABOVE TO PREPARE AND DELIVER, ON OR BEFORE 31 OCTOBER 2012, A TAX RETURN ON THIS PRESCRIBED FORM FOR THE YEAR 1 JANUARY 2011 TO 31 DECEMBER 2011."

Thanks for reply! Its form 12. So does it mean that even if a person has only business name registered on his name he has to file an annual return or revenue presumes that I am self-employed?

Decorus

J.Ryan wrote: »

The Registrar of Business Names does not allow you to pre-register a name, you (on the registration form) declare the date that you started using the name.

I imagine that the computer systems are now being intergrated to catch things like this.

You can file the return, if you are an PAYE worker and just put nil's on the self employed section and complete the relevant sections of the rest of the form. If the Revenue sent out the form they will expect to get it back, it will be simpler to complete the form and go into one of the public offices with it and explain it to the person there, than to not submit it.

Thanks for reply! Honestly I dont remember to declare the that I would start trading in a certain date...Is it a part of business name registration?
I can file the return if I MUST do it no problem. The only thing I was thinking that maybe it was a mistake and persons which are not registered for VAT and not being self-employed dont have to do it.

J.Ryan

Decorus wrote: »

Thanks for reply! Honestly I dont remember to declare the that I would start trading in a certain date...Is it a part of business name registration?
I can file the return if I MUST do it no problem. The only thing I was thinking that maybe it was a mistake and persons which are not registered for VAT and not being self-employed dont have to do it.

Not all businesses are VAT registered!

Decorus wrote: »

Thanks for reply! Its form 12. So does it mean that even if a person has only business name registered on his name he has to file an annual return or revenue presumes that I am self-employed?

In 99.9999% cases a person with a business name would be trading and be at least self employed with a paid employment as well.


However the business name could be a coincidence, your salary in your employment could have gone over a threshold where the Revenue wish people to complete form 12's.

Decorus

Thank you!
I wasnt employed by anyone in 2011, does it matter anything? I mean anyway on the basis of holding business name they can ask you to file annual return?

barneystinson

Decorus wrote: »

Thank you!
I wasnt employed by anyone in 2011, does it matter anything? I mean anyway on the basis of holding business name they can ask you to file annual return?

Look, the bottom line is if they send you a Form 12, you are obliged to complete and return it (unless it turns out that the longer Form 11 is the appropriate form). They don't need a basis/reason for sending it to you, it may be that it's because they've picked up on the fact you've got a business name registered, or it may not.

If you don't intend to use the business name then you should cancel it. The form is RBN3.

Decorus

Thanks!

As I already said above to fill it in and post not a problem. The only thing was to find out whether report could be sent to me mistakenly as I never heard before that business name holders presumed to be self-employed without being registered as one of them.

barneystinson

Well if they thought you actually were trading, it would be a Form 11 rather than a Form 12. There's a good likelihood it's coincidental that you have a registered business name. There's no "mistake" here, Revenue can send a tax return to anyone they want, for any reason they want, and the person will be required to file it.

Having said all that though, I don't really see why you would find it strange that they might believe that someone who registers a business name would have a business...!

Decorus

barneystinson wrote: »

Well if they thought you actually were trading, it would be a Form 11 rather than a Form 12. There's a good likelihood it's coincidental that you have a registered business name. There's no "mistake" here, Revenue can send a tax return to anyone they want, for any reason they want, and the person will be required to file it.

Having said all that though, I don't really see why you would find it strange that they might believe that someone who registers a business name would have a business...!

Thanks! I dodnt see it strange, I just wanted to know for a future reference whether business name holder obliged to file annual returns, as I never heard about it before.
I found out also that form 12 could be sent randomly to me, so that probably what it was.
Thanks everyone, appreciate all opinions!!!