VAT3 Return Question

TippCashel

Hi all

First time doing VAT3 refunds and I got the below completion correspondence (first time in Sept-Oct for €79 and now this one for Nov-Dec)

What does this mean? I won't actually 'see' the VAT refund to the company?

Thanks!

-- -- -- --

Dear Sir/Madam,

Adjustments have been made to your VAT account as outlined in the following statement.

Yours faithfully,

Joseph Howley

Collector General

Description Date Receipt No. Debit Credit

VAT period 1/11/2021 to 31/12/2021

VAT3 Claim 000000 102.00

To PAYE/Empe 2020 30/12/2021 000000 102.00

Total 102.00 102.00

Balance €: 0.00 0.00

Statement Balance €: 0.00 0.00

gordongekko

https://www.boards.ie/discussion/2058226460/vat3-return-question

Looks like you had a liability in paye and the refund has been transferred to cover some/all of that liability.

TippCashel

Ah that makes sense, thank you

I'm surprised in a sense that it comes out of my personal PAYE liability since these were business purchases (although I am a Sole Trader).

I thought I'd be able to settle personal PAYE liability in another way

ari101

As a sole trader, not a company, you are one accountable person for tax.

I've only seen unrequested offsets where another tax is overdue. The offset references '2020' PAYE which would have been due 31 Oct 2021 (or 17 Nov for pay and file online), if I am interpreting correctly. Until this is cleared you likely won't see a refund back. You can settle the income tax by making a payment through ROS, if you are in a position to do so now it would limit the interest they can charge on late payment.

TippCashel

Cool ok, I assumed that might be the case for being a Sole Trader (was still surprised that refunds offset against PAYE liability all the same!)

I appreciate the help guys - Might see can I just pay off the liability in one lump away from Business funds. Have an unresponded message to Ros from 31st Dec but I'd say they probably aren't fully back in office till Monday.

ari101

As a sole trader you can pay this from your business back account if you have funds there. It is in your interest to pay it on time to avoid interest penalties etc. Assuming you have an accountant doing your return, it might be worth asking them to arrange the payment each year when the return is uploaded on your behalf - they can arrange a debit from a chosen bank account via ROS when doing this.