First Time Form 11

tbayers

Been a crazy year. Even more crazy as I started a very small business so became self employed. Was PAYE worker first 6 months of year, self employed for last 3 months. Completed form 11 yesterday. Its pretty straight forward considering I only made a very small profit. But was on PUP for several weeks so had to pay tax on that. My partner has a steady PAYE job and their tax affairs seemed to be in order and we are joint assessed.

My question is, when i put in figures without including the SW payments i still owed a lot of tax (way more than profit).. Would this have something to do with rate bands or similar? I presume going self employed would have had an effect on partners taxes slightly?

Apologies for simple nature of post but have to start somewhere. We don't feel the need to hire an accountant, yet. So hoping for friendly advice elsewhere for time being. Oh and can you edit your statement once entered? We haven't submitted figure for preliminary tax yet. And Tax Credit wise is it as simple as:
Person A: Earned Income Credit 1650
Person B: Married Credits (3300) and PAYE Credit (1650).
Total:6600
Does this still apply?

tanit

I am not sure if anyone is going to answer your question because it is going to be vey difficult to know what is going on in your case without seeing figures and it is not in any way a good idea to post figures publicly.

It could be many reasons why you are getting a hit with additional taxes:

1. If your partner was working for the full year maybe someone allocated extra credits to them and they paid less tax. At the end of the year you added your extra income and suddenly the system notices that they were undertaxed, hence the hit.
2. You were not paying taxes while you were out of work but still receiving PUP, welfare income and again you are undertaxed and getting a hit
3. You have filled out the F11 incorrectly and that's why you are getting a hit on taxes at the end
4. You have not deducted expenses from you income and you are getting extra taxation (check also other expenses not related to your self-employed work such as Health Expenses, flat rate if they apply to you or your partner, etc)
5. Other items I cannot think about right now, etc

The best thing you can do is try to contact Revenue explain them the situation and see if they can tell if you made a mistake filling out the form (to be honest I am surprised the one for 2020 is already available to fill out in their website, check if you are filling out the correct year as well) or if it was an issue of rearranging tax credits during the year with your partner or underpayment while you were getting either PUP or Job Seekers Benefit.

Alternatively you might want to try getting in contact with the probono accountants in the Citizens Information Centre, give them a call and see if they can help you

tbayers

tanit wrote: »

I am not sure if anyone is going to answer your question because it is going to be vey difficult to know what is going on in your case without seeing figures and it is not in any way a good idea to post figures publicly.

It could be many reasons why you are getting a hit with additional taxes:

1. If your partner was working for the full year maybe someone allocated extra credits to them and they paid less tax. At the end of the year you added your extra income and suddenly the system notices that they were undertaxed, hence the hit.
2. You were not paying taxes while you were out of work but still receiving PUP, welfare income and again you are undertaxed and getting a hit
3. You have filled out the F11 incorrectly and that's why you are getting a hit on taxes at the end
4. You have not deducted expenses from you income and you are getting extra taxation (check also other expenses not related to your self-employed work such as Health Expenses, flat rate if they apply to you or your partner, etc)
5. Other items I cannot think about right now, etc

The best thing you can do is try to contact Revenue explain them the situation and see if they can tell if you made a mistake filling out the form (to be honest I am surprised the one for 2020 is already available to fill out in their website, check if you are filling out the correct year as well) or if it was an issue of rearranging tax credits during the year with your partner or underpayment while you were getting either PUP or Job Seekers Benefit.

Alternatively you might want to try getting in contact with the probono accountants in the Citizens Information Centre, give them a call and see if they can help you

Thanks very much for your reply. After reading back on my post it was very vague and lacking any detail. Will take on board your tips, very much appreciated.

Ciaran

One thing that might help is to tick the employee credit for yourself as well as the earned income credit. You say that your profit was very small so the earned income credit might be limited to 20% of your profit rather than the full €1,650.