1st year self-employed

FewFew

Hi,

Somewhat confused and I hope you can help me out.

This is my first year registered as self-employed. I'm a full-time student, so rather than get a part-time job I decided to do some freelance stuff.

I'm confused as to whether or not I need to make a tax return now, as it's my first year.
I know I'm already late, but I was under the impression that I paid my taxes for 2012 in Oct 2013.

Revenue.ie has "Under the Self-Assessment system, you have a legal duty to make a tax return for a year by 31 October in the following year."
but then there's also the stuff about preliminary taxes.

I've only done a few freelance jobs, my gross income at the end of the year will be about €4250 (I was living off savings til June) so just over the USC exemption threshold, so I'm not expecting a big tax bill regardless, unless I've completely got it wrong.

kennyb3

Fewcifur wrote: »

Hi,

Somewhat confused and I hope you can help me out.

This is my first year registered as self-employed. I'm a full-time student, so rather than get a part-time job I decided to do some freelance stuff.

I'm confused as to whether or not I need to make a tax return now, as it's my first year.
I know I'm already late, but I was under the impression that I paid my taxes for 2012 in Oct 2013.

Revenue.ie has "Under the Self-Assessment system, you have a legal duty to make a tax return for a year by 31 October in the following year."
but then there's also the stuff about preliminary taxes.

I've only done a few freelance jobs, my gross income at the end of the year will be about €4250 (I was living off savings til June) so just over the USC exemption threshold, so I'm not expecting a big tax bill regardless, unless I've completely got it wrong.

Yes your deadline is 31/10/13 - as its your first year you have an extension until 31/10/14 actually but best to deal with it at 31/10/13 so you don't have two years together.

FewFew

kennyb3 wrote: »

Yes your deadline is 31/10/13 - as its your first year you have an extension until 31/10/14 actually but best to deal with it at 31/10/13 so you don't have two years together.

Thanks Kennyb, that makes sense. This whole preliminary tax lark is what's confusing the issue.
Hopefully when next year rolls around I can either afford an accountant or I'll be out of the self-employed game.

yop

Apologise about jumping on this thread, but you mentioned prelim tax there.
Reg'd as self employed since July 2010.
Last year I paid my 2010 tax + a prelim tax, but this year I paid a 2011 and 90% of the estimated tax for 2012.
Do I need to do that every year?

kennyb3

yop wrote: »

Apologise about jumping on this thread, but you mentioned prelim tax there.
Reg'd as self employed since July 2010.
Last year I paid my 2010 tax + a prelim tax, but this year I paid a 2011 and 90% of the estimated tax for 2012.
Do I need to do that every year?

Every October you'll pay the balance of the year before (or you may be in a refund if you over paid prelim tax) plus your prelim tax for the following year.

I'd always recommend clients to pay 100% of the p/y, as 90% of expected is very uncertain unless your very financially competent.

yop

That makes sense, 90% will cover me easily as I worked 5 months less this year.

Thanks for getting back on that.