Preliminary Tax?

SpaceRocket

Hi,

I'm newly self employed this year. Have my accountant lined up as I would be useless at filing my own accounts.
I was told that I have nothing to worry about this October 31st, as I should file my accounts next year (2019) for this year (2018).

However I have seen online something called preliminary Tax. Whereby I should pay this October 31st for estimated tax for this year, and then either pay more, or get a refund next October.

Which is true?? Or do I have the option of either?? I am so confused. Please help!

Stratvs

As you have your accountant lined up I'd suggest a quick call to them to verify what I'm saying ( bear in mind they're probably up the walls this month )

On Preliminary Tax you don't have to make a payment in the first year. But you can make a payment if you choose which would ultimately reduce any balance due for the first year.

Here's an from Revenue which may clarify :-

Tax and Duty Manual Part 41-00-28
3.3 Making payments under Self-Assessment for the first time
If you chose the option to pay Preliminary Tax of 100% of the previous year's liability, a
payment of Preliminary Tax may not generally be required for the first year in order to
avoid interest charges. However, if you do make a payment of Preliminary Tax in the first
year, this will reduce the amount and number of tax payments that you will be required to
make subsequently. If, for example, your tax affairs for the previous tax year were dealt
with under PAYE and you start as a self-employed person in the current tax year, you can
make a payment of Preliminary Tax on 31 October in the current year.

Calahonda52

This could be preliminary tax or just other tax paid.
I paid them a lump of tax earlier in the year for 2018

How do I reflect that in the Form 11?

The box appears in the IT assessment page in Column A ( and of course column

Stratvs

Calahonda52 wrote: »

This could be preliminary tax or just other tax paid.
I paid them a lump of tax earlier in the year for 2018

How do I reflect that in the Form 11?

The box appears in the IT assessment page in Column A ( and of course column

If you download a prepopulated form 11 then any tax already paid directly will appear on the IT self-assessment page col A and you can transfer that to col B so only any balance +/- will then show. If you are completing a blank f11 you need to manually enter the amount that you paid into col B as the actual result will be different to the f11 computation.

Calahonda52

Stratvs wrote: »

If you download a prepopulated form 11 then any tax already paid directly will appear on the IT self-assessment page col A and you can transfer that to col B so only any balance +/- will then show. If you are completing a blank f11 you need to manually enter the amount that you paid into col B as the actual result will be different to the f11 computation.

Thanks, I had to use a blank one as I have changed my marital status