From form 11 to form 12

fredo1664

Hello.

My wife earns a PAYE income but also started a side business as a sole trader in 2021. Last year we registered her for ROS and she filled a form 11 in order to pay the preliminary tax.

Now the side business is quite slow so she will not make more than €5000 a year. I understood that in that case she can fill a form 12 instead of a form 11 and not go through ROS.

Does anyone know how to do this? Can she just fill a form 12 this year for her 2021 income and forget about it? What about the preliminary tax she paid last year?

Thanks!

Calahonda52

I think you should complete the 2021 return on ROS as this will automatically allocated the PT paid.

In passing, why not stick with ROS?

Mrs OBumble

If there's a chance she will nett more than 5k next year, then just stick with the 11. It gets easier the more times you do it.

Stratvs

If she is still registered for Form 11 filing then MyAccount / ROS will not allow an eF12 to be filed for that year. The F11 overrides it. So you can't just switch easily in years where it goes up and down on the €5,000. She could therefore file the F11 for the year that's due then as long as is certain that will not exceed the €5,000 just cancel the self-assessed Income Tax registration from end of that year ( grounds - no longer a chargeable person ) and then file the eF12 instead going forward.

One major difference in the filing especially where she has existing PAYE income, the eF12 mechanism charges Tax and USC where due, but not PRSI. The F11 will compute PRSI at 4% on the self-employed income.

Also, for 2021 in filing the F11 you must tick a section at the start to indicate why you're filing a F11 e.g. PAYE with non-PAYE income exceeding €5,000 net. I assume they will use this to tease out those cases which need not file F11.

fredo1664

Thanks all for your help.