File and pay - can anyone help?

Liven

Hi guys, wouldnt be writing here if my questions werent so neglected anywhere else.
Heres the deal - theres somebody out there who availed if the back to work scheme last year, they have to do the file and pay form now and theres a number if questions with it.
1. They started the scheme in May so in the column where they have to put down the incime from the social welfare office is it only the amount they got from May or the whole year in general?
2. Their partner doesnt work, and has nothing to do with the business but seeing as theres space for the partners income Nd she gets the child benefit for a child do they have to include this too?

Hope ye can help guys.

smeharg

Someone who commenced business in 2011 has until October 2013 to file the first tax return. However, preliminary tax may be due this year, and there's nothing to prevent early filing.

The tax return is for the full year so all income for whole year must be included. It is not just a return of business income.

Non-taxable social welfare benefits need not be included.

See the guide to completing tax returns for more assistance, and if you've any more questions come back and ask.

http://www.revenue.ie/en/tax/it/leaflets/guide-pay-file.pdf

Liven

smeharg wrote: »

Someone who commenced business in 2011 has until October 2013 to file the first tax return. However, preliminary tax may be due this year, and there's nothing to prevent early filing.

The tax return is for the full year so all income for whole year must be included. It is not just a return of business income.

Non-taxable social welfare benefits need not be included.

See the guide to completing tax returns for more assistance, and if you've any more questions come back and ask.

http://www.revenue.ie/en/tax/it/leaflets/guide-pay-file.pdf

Thank you! I think they sorted it out thanks to you:)

Ive nothing to do with it but ive a few questions out of curiosity, would you mind answering them?
1. How would they know if they have preliminary tax to pay, and what if they decided not to pay it this year? Would they even have to send the form away? And would they have to do any calculations for last year at all so?
2. I was looking at the form sample, and how dO you even count the preliminary tax and the other too?

Sorry for all the questions but you seem to be really informed

smeharg

Liven wrote: »

Thank you! I think they sorted it out thanks to you:)

Ive nothing to do with it but ive a few questions out of curiosity, would you mind answering them?
1. How would they know if they have preliminary tax to pay, and what if they decided not to pay it this year? Would they even have to send the form away? And would they have to do any calculations for last year at all so?
2. I was looking at the form sample, and how dO you even count the preliminary tax and the other too?

Sorry for all the questions but you seem to be really informed

Thanks, Liven.

Your first question highlights the biggest problem with the provision to allow first time filers to file in the second year: how do you calculate preliminary tax if you don't know your previous year's liability? To do it accurately, you need to calculate the tax due, and in my opinion, if you're going to do that you might as well go ahead and prepare and file the return and get it out of the way.

I think you're asking in your second question "How do you make the preliminary tax payment?". It is not included in Form 11. Form 11 is used to inform Revenue of all your income etc to facilitate tax to be calculated and an assessment to be issued. The payment is separate. When you do file your return online you will be presented with a "Statement of net liabilities" to complete. Here you enter the balance of tax due for the year of the return just filed plus the amount of preliminary tax due for the current year. The total of the 2 is the amount paid to Revenue.

Alternatively, you can also make a payment without filing a return. You will be presented with a list of tax years against which you can make a payment.

Liven

smeharg wrote: »

Thanks, Liven.

Your first question highlights the biggest problem with the provision to allow first time filers to file in the second year: how do you calculate preliminary tax if you don't know your previous year's liability? To do it accurately, you need to calculate the tax due, and in my opinion, if you're going to do that you might as well go ahead and prepare and file the return and get it out of the way.

I think you're asking in your second question "How do you make the preliminary tax payment?". It is not included in Form 11. Form 11 is used to inform Revenue of all your income etc to facilitate tax to be calculated and an assessment to be issued. The payment is separate. When you do file your return online you will be presented with a "Statement of net liabilities" to complete. Here you enter the balance of tax due for the year of the return just filed plus the amount of preliminary tax due for the current year. The total of the 2 is the amount paid to Revenue.

Alternatively, you can also make a payment without filing a return. You will be presented with a list of tax years against which you can make a payment.

It sounds really confusing, but is it hard to do it yourself? I mean, how do you calculate the tax due and the preliminary tax?

smeharg

There will be plenty of people on here will tell you to do it yourself, but if you find the above confusing you'll probably find preparing the accounts and completing the return more confusing.

Probably the easiest way to calculate the tax is to download the ROS Offline application from Revenue.ie