Sole Trader Tax liabilities

P

PaulyB63

Registered User
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86
Hi All,

Need a little advice. I owe revenue a bit of money from tax period 2007/2008. I ran into serious trouble back then and just kind of forgot about it until now. The amount is roughly €2,000. I kept up to date on everything else such as VAT returns, etc etc.

I want to cease trading now and I obviously need to sort out the outstanding liability.

My questions are:

  1. Do I need the services of an accountant to file this return? (I phoned revenue today and they told me that I wouldn't but I was surprised by this?)
  2. If I don't use an accountant, what are the possible pitfalls and vice versa if I do use an accountant?
  3. Will I have to pay a penalty for late payment and if so, how does that work and what are the standard penalties?
  4. Will I need to pay this amount as a lump sum?
  5. How long, post payment, will it take to generate a tax clearance certificate so that I can open my new business?
Thanks for any advice received.

P
 
1. You don't need the services of an accountant to file your tax return and accounts.
2. If you do not use an accountant you need to be sure that you are totally familiar with the requirements regarding filing and how to properly complete the tax return. You may run the risk of under or overpaying tax if you file and are not sure of what you are doing.
3. Standard penalty of 10% + interest at 0.0322% per day on the sum until it is paid.
4. It is already overdue so it is payable immediately. Revenue may, however accept instalments provided interest is also paid.
5. Once your tax liabilities are clear you may apply immediately for a TCC.
 
Hi Graham_07

Thanks so much for the succinct reply.

You have cleared everything up for me...!!

Best wishes,

P
 
As of 1 July 2009, the relevant interest rate is 0.0219% per day. Revenue should allow you discharge the liability over (say) 2 years. A downpayment is usually required and in cases where tax clearance is required Revenue usually insist on something in the region of 40%.
 
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