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cessation of business

  • 21-10-2014 11:40am
    #1
    sp2319
    Registered Users, Registered Users 2 Posts: 3 ✭


    As sole trader since 2004 my business ceased october 2013. As I only delivered services my tax returns were quite simple and I did them myself after some initial guidance. But now I find difficulties in preparing the 2013 tax return. Usually the information from revenue.ie was ok, but with the cessation matter it gets really confusing.

    As my accounting period runs from 01/01 to 31/12 I suppose I do not need to do adjustment for the penultimate year (2012).

    With my 2012 tax return I submitted a 2013 preliminary tax based on the profits from 01/01 to 31/10. After that I had no more Irish income, as I moved abroad from that date. Therefore I suppose my assessable profits (01/01/13 - 31/10/13) are still ok.

    What I could not figure out is if I have to adjust the tax rates, reliefs and credits as I am taxed for only 10 months instead of 12 months (I read something about remittance clause). So I do not know, if the preliminary amount I paid last october is still ok.

    I am trying to make sense out of this, and would be grateful for some confirmation.


Comments

  • #2
    Alan Shore
    Registered Users, Registered Users 2 Posts: 735 ✭✭✭Alan Shore


    Did you earn any income, while abroad?

    If it's PAYE then it may not be subject to Irish tax under Split Year Relief. Self employed may be subject to Irish tax.

    Either way you are subject to Irish tax on you profit Jan - Oct with a years standard rate cut off and credit.


  • #3
    sp2319
    Registered Users, Registered Users 2 Posts: 3 ✭sp2319


    I earned Dutch PAYE income the last 2 months of 2013.

    I am fine with paying the Irish tax for Jan-Oct and have done that already last year as preliminary tax anyway, but I wouldnt know how to enter the PAYE income in the form 11.
    Alan Shore wrote: »

    Either way you are subject to Irish tax on you profit Jan - Oct with a years standard rate cut off and credit.

    I suppose I should file the tax return as usual, with profits and accounts for Jan - Oct and calculate my liability also not differently.


  • #4
    sp2319
    Registered Users, Registered Users 2 Posts: 3 ✭sp2319


    Thanks Alan for your reply.

    Could somebody tell for which period I should report my accounts if my self-employed income ceased in October 2013.

    I understand that because I stopped trading in October and had no more Irish income (moved abroad and collected only foreign PAYE) I would give my profits from Jan - Oct. But I am not sure if I should give my account calculations for the same period or for Jan - Dec.


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