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PAYE Worker with over €5,000 Prelim Tax?

  • 29-10-2020 8:44pm
    #1
    Me2U2
    Registered Users Posts: 22 ✭


    I am a PAYE worker who earns a little extra each year which I have been declaring using MyAccount up until now.

    I'm looking over my 2019 income and realised I got a payment in between Christmas and New Year 2019 which has pushed me over the €5000 threshold. I was sure this arrived in January but obviously not.

    From what I can see, I have to fill in a Form 11 online or on paper? When I went to look this up it says I also have to pay preliminary tax for this year, but I don't think I could stretch to the 90% they say I should pay, or 100% of 2019 tax.

    I have two questions:
    Is the preliminary tax only for self employed? If not, crap.

    When I got to file online it's telling me I need to register for ROS and asks me when the business started. Do I have to fill this in or just keep going as a private person?

    Thank you for any help!


Comments

  • #2
    relevanc
    Registered Users Posts: 55 ✭✭relevanc


    If you’ve exceed the €5k threshold Revenue deem you as a chargeable person.
    A chargeable person includes company directors, sole traders and PAYE workers with additional income that exceed the threshold.

    You don’t have an option of filing a paper return as the deadline for that is tomorrow.
    So you’ll need to file online via ROS instead of MyAccount.

    You should google debt warehousing as you may be able to get temporary relief under this scheme If you are struggling with your 2019 tax obligations.


  • #3
    Me2U2
    Registered Users Posts: 22 ✭Me2U2


    relevanc wrote: »
    If you’ve exceed the €5k threshold Revenue deem you as a chargeable person.
    A chargeable person includes company directors, sole traders and PAYE workers with additional income that exceed the threshold.

    You don’t have an option of filing a paper return as the deadline for that is tomorrow.
    So you’ll need to file online via ROS instead of MyAccount.

    You should google debt warehousing as you may be able to get temporary relief under this scheme If you are struggling with your 2019 tax obligations.

    Thanks for the info, I looked up debt warehousing and don’t think this will apply unfortunately. I saw conflicting info on here about whether preliminary tax is mandatory or not, I suppose that is the only sticking point as I had put by plenty to cover 2019 but hadn’t factored in preliminary for 2020.


  • #4
    nompere
    Registered Users Posts: 1,675 ✭✭✭nompere


    You have to tell Revenue what preliminary tax figure you will pay. So to that extent it is mandatory. That can be a nil declaration. So how much preliminary tax you pay is up to you. But if you pay a figure for 2020 that is less than your 2019 liability, and is also less than 90% of your 2020 liability, then Revenue will charge interest on the balance.

    So if your 2019 liability to tax was nil, for whatever reason, then your preliminary tax for 2020 can properly also be nil. You will just have to pay all of your 2020 tax this time next year, plus your 2021 preliminary tax at the same time.


  • #5
    Me2U2
    Registered Users Posts: 22 ✭Me2U2


    nompere wrote: »
    You have to tell Revenue what preliminary tax figure you will pay. So to that extent it is mandatory. That can be a nil declaration. So how much preliminary tax you pay is up to you. But if you pay a figure for 2020 that is less than your 2019 liability, and is also less than 90% of your 2020 liability, then Revenue will charge interest on the balance.

    So if your 2019 liability to tax was nil, for whatever reason, then your preliminary tax for 2020 can properly also be nil. You will just have to pay all of your 2020 tax this time next year, plus your 2021 preliminary tax at the same time.

    Thanks for that, really helpful. I see if you pay by direct debit you can pay 105% of the 2018 liability as preliminary tax. That’s going to be a good option for me because 2019 and 2020 had unusually more extra income that definitely won’t be repeated anytime in the next few years.


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