selected for audit, now PAYE, little bit of freelance few years ago

R

redness

Guest
Hi everyone, not sure if this should be here or in personal tax. Basically I'm getting audited, need to send personal bank account and any invoices which were sent from any of my business for a particular tax year. Thing is I don't have businesses and never really properly have.

I'm PAYE now, but a couple of years back, including the audit year in question I was out of regular 9-5 work for medical reasons for about two years but managed to get a bit of work through home, more so doing a favour for someone really, no more than 10,000 euro in total for that year.

I didn't think I had to pay income tax on this as it's low enough so didn't write to revenue about it. I wasn't taking job seekers or anything while I had this income. I had no other income. If I didn't have this little bit of work I most likely would have to have gone on job seekers.

I never really had a business as such as in a Ltd. I just sent a crappy Microsoft word invoice to the person I did the work for and she transferred into my main personal bank account. I never attempted to use other bank accounts or never requested she pay in cash.

I'm thinking this persons business accounts have been audited and that's why revenue have selected me.

so my question is, how much is this going to hurt? Have I been careless or broken law outright? Will tax people look to issue financial penalties to me for not declaring even though I wouldn't have had much liabilities if I did.

I don't have any of the invoices anymore, but can get past bank statements which I will be able to tell exact amount of 'freelance' income from. Also the letter requests all personal bank account records for the year in question. Does this basically mean bank statements?

Your advise is appreciated, how do I make this as painless as possible?
 
@redness

- when is the Audit due to start?
- what Income did you have for that year?
- do you file or have you filed tax returns?
- have you or do you know what expenses you had in relation to the work including a share of house expenses if you worked from home ..

I would be inclined to meet an accountant and if you want a name let me know. If you know someone who is is good then meet them asap.

You actually may not have a huge liability.

But you have given very little to go on.
 
Best advice is to get an accountant to prepare a voluntary disclosure for you. There will be some interest and penalties, but if the liability is small so will the interest and penalties.
 
Obviously need to go to an accountant who will have all the facts to hand. But let's just take a guesstimate for the purpose of the poster. If this is a couple of years back and the total income is circa 10K there should be no underpayment of tax. Tax credits, higher than tax etc etc. the only liability should be PRSI of 400 euro, plus interest & penalties. The penalty can be negotiated with revenue, but they will generally suggest 50% (if you make a qualifying disclosure) as it will be deemed deliberate behaviour, prompted disclosure per revenue code of practice. Revenue generally don't charge interest on underpaid PRSI in an audit. Hope this is of some help but any accountant with all the facts to hand will be able to give a definitive figure.
 
You must log in or register to reply here.
Back
Top