Potentially daft question: How much Preliminary Tax will I pay?

brophs

Hi,

Brief question, if you don't mind. I'm a Self-Employed Sole Trader doing a quick calculation of my Income Tax situation before I go on honeymoon (don't worry, this will go to an accountant to be properly looked after next month) and I had a quick question about Preliminary Tax.

To use a few simple figures at random just to get the gist, let's say:

Gross Income: €25,000
Gross Expenses: €5,000
Net Income: €20,000
Tax Liability: €20,000 @ 20% = €4,000
PRSI: €800
USC: €400
Total Tax Liability: €5,200

Tax Credits: €2,000
Professional Services Witholding Tax Already Paid: €4,200

i.e. I would be due a refund of €1,000 (in theory).

So assuming I'm going to choose the 'Pay 100% option', what am I actually paying 100% of? Is it:

1. 100% of the Total Tax Liability before any credits or PSWT is deducted (i.e. €5,200?)?
2. 100% of the Total Tax Liability less Credits (€5,200 less €2,000=€3,200)?
3. 100% of the final amount payable, which is €0, as I am due a refund of €1,000 in this example?

Thanks in advance.

brophs

I don't suppose anyone can point me in the right direction on this?

Many thanks

Ciaran

Option 3 is correct