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Dormant sole trader

  • 22-03-2022 6:33pm
    #1
    B.A._Baracus
    Registered Users, Registered Users 2 Posts: 11,217 ✭✭✭✭


    Hi all.

    Quick question. I am registered as a sole trader but havent traded since 2018, I do a file 11 as I want to keep it open (want it to go back to it as a side business) but I was late doing my file 11 and I put down 0 earned income but its saying I owe 1650 euro in taxes. That can't be right can it?

    I have a job but pay paye on that. Earn nothing through my business.

    Thanks.



Comments

  • #2
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    €1650 is the 2021 personal and PAYE tax credit amount. Have you ticked both of those boxes in the tax credit section of the Form11?



  • #3
    Stratvs
    Registered Users, Registered Users 2 Posts: 958 ✭✭✭Stratvs


    downtheroad is correct, even if you got the €1,650 PAYE tax credit on your Tax Credit Cert you must tick that box in the personal credits section of the Form 11 or they won't allow it. It looks like that's what happened. You can go in and amend the return by going to file online select Form 11 and the year. Tick that you're claiming an allowance and write in the box that you forgot to claim the PAYE credit. Then go to that section tick it and file the return. It will amend then showing correct liability.



  • #4
    B.A._Baracus
    Registered Users, Registered Users 2 Posts: 11,217 ✭✭✭✭B.A._Baracus


    Thanks for getting back guys, really appreciate it.

    I havent submitted my file 11 but looking at it again now. It says: (j)(i) Balance of Tax Payable for this period: 1650.18c

    I'll be honest lads, some of this goes over my head. So I should tick the box with tax credit? also... and sorry if this is a stupid question, but wont i lose that tax credit? just trying to wrap my head around things as, as far as I know if you earn 0 you pay 0. No tax credit needed.



  • #5
    ari101
    Registered Users, Registered Users 2 Posts: 2,835 ✭✭✭ari101


    When you do the form 11 it should include all income and taxes, so it should bring in your PAYE income and recalculate your tax based on what you put in on the form. You need to confirm (tick) both Personal and PAYE credit so that they are applied in the year end recalculation.



  • #6
    Stratvs
    Registered Users, Registered Users 2 Posts: 958 ✭✭✭Stratvs


    https://www.boards.ie/discussion/comment/118825232#Comment_118825232

    The PAYE/employee Tax credit of €1,650 is allocated against your PAYE earnings. You have been allowed that through PAYE already but if you don't tick it on the Form 11 ROS won't include it so it's looking like you've underpaid €1,650 in total but in reality you haven't. That tax credit is unconnected with the dormant 0 earning self-employment. So tick the box and it should recalculate to nil owing.

    FWIW at the beginning of the F11 this year you must also tick a box showing why you're filing a Form 11. You said you want to keep it open but unless you're earning over €5,000 pa from non-PAYE you don't need to file a Form 11. Small self-employments can be filed on the eForm 12 and dealt with via PAYE.



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