Help for a friend - 'trading as'

Penny Tration

Hi there, query for a friend.

He worked as a manager for company X. Handed in his previous p45 when he started there 2 years ago, taxed as normal and so on.

He left company X recently, but received a letter from Revenue addressed to 'Mr John Doe, Trading as Company X.' the letter told him to file his tax returns for the year. It's called an 11S form. It's for tax return and self assessment.

He has never been a sole trader, always an employee of a company.

Any idea what he can do to rectify this? What to expect when going into the Revenue office? He assumes a serious error has been made here and is really worried about financial and tax implications.

Thanks in advance, and sorry if the question seems stupid!

djk1000

Did he get payslips, P60's and a P45 from Company X? If he has taken on as a PAYE worker, his employer deducted his PAYE/PRSI and he has a record through payslips, He should be ok.

I'd say the first thing to do is phone the tax office using the phone number on the letter and ask them what the story is, was he ever an employee. If not, he'll have some form filling to do and the Revenue will contact Company X to confirm that he was in fact an employee.

Seems like an unusual situation, are you sure this is the full story?

Mr. Incognito

Call the Revenue or send a letter explaining the situation and asking to deregister for income tax as a PAYE employee as they appear to have made an error

Penny Tration

djk1000 wrote: »

Did he get payslips, P60's and a P45 from Company X? If he has taken on as a PAYE worker, his employer deducted his PAYE/PRSI and he has a record through payslips, He should be ok.

I'd say the first thing to do is phone the tax office using the phone number on the letter and ask them what the story is, was he ever an employee. If not, he'll have some form filling to do and the Revenue will contact Company X to confirm that he was in fact an employee.

Seems like an unusual situation, are you sure this is the full story?

Thanks for that.

Yes, it's definitely the full story. He's shown me the letter because he was in a panic and assumed I'd be able to help :pac:
He didn't get many payslips (4 in two years), but got his p60s and his p45.

Hopefully just an error that can be resolved by some form filling!

Legend100

was he a company director with a shareholding (as he would then be under self assessment)

srsly78

Only if he had >= 15% shareholding (proprietary director). Even then it would not be "trading as".

Penny Tration

Thanks guys.

No shareholding, basic retail managerial job, similar to the job I myself have!