Preliminary tax

MarcusMaximus

I ceased trading and retired in August 2024 and am currently doing my tax return for that year through ROS. Just wondering do I still have to pay PT for subsequent years? I will be declaring my pension earnings each year so will be liable for some tax on that I imagine.

MarcusMaximus

Actually I finally got through to revenue and they answered this for me, so no need to reply.

Paul.kavanagh

What did they say ?

MarcusMaximus

No I no longer have to pay it since my business has ceased. I move from self-employment, which required PT for the following year to be paid each year, to the PAYE system where the equivalent of an income tax return is much simpler and where you only pay the tax due for the previous year, as far as I know.

creedp

Could someone be good enough to confirm if A person has an overpayment of tax for 2024 , does the 100% rule mean there is no preliminary tax liability for 2025?

Or is the 100% rule not applicable in this context necessitsing paying 2025 preliminary tax based on 90% of the estimated 2025 final liability

DmanDmythDledge

The first paragraph is correct. That's assuming the actual liability is an overpayment, and it's not a refund due as 2024 prelim tax paid was greater than the 2024 liability.

creedp

https://www.boards.ie/discussion/comment/123999665#Comment_123999665

Thanks for this. Yes in this case a reduction in paye income due to illness has resulted in an overpayment of PAYE tax and a negative final tax liability for 2024 before applying the 2024 preliminary tax. However, may leave some of the refund on account as will have both a 2025 tax liability and a 2026 preliminary tax liability next year. Thanks again