Failure to file tax return penalties

M

munstermike

Guest
OK, bit of background...

I'm a PAYE worker on the higher rate of tax and have also been running a free website for enthusiats since start of 2007. In my head I had seen it as providing a service to those in this particular niche and not as a profit making enterprise. Not yet anyhow.

However, later in 2007 and the years since, I've had some revenue in the
form of banner advertising. The total revenue received are relatively small ie (1,500 - 2.5k total per year). From looking at the various costs of running the site, I would owe no tax '07, '08 and a small amount last year
(€100-200 approx).

Problem, I find myself in due to my own ignorance (no excuse of course), it
that I didn't file any additional tax returns for those years. This is something I'm not comfortable with and would like to sort out.

My main concern is around penalties. From what I can gather I would have
to pay a max of €1200 for the late filings and then a % of any tax owed.

Is this correct ?

By the way, I do plan to get with an accountant in the next few weeks.

Thanks for any advice.
 
munstermike said:
OK, bit of background...

I'm a PAYE worker on the higher rate of tax and have also been running a free website for enthusiats since start of 2007. In my head I had seen it as providing a service to those in this particular niche and not as a profit making enterprise. Not yet anyhow.

However, later in 2007 and the years since, I've had some revenue in the
form of banner advertising. The total revenue received are relatively small ie (1,500 - 2.5k total per year). From looking at the various costs of running the site, I would owe no tax '07, '08 and a small amount last year
(€100-200 approx).

Problem, I find myself in due to my own ignorance (no excuse of course), it
that I didn't file any additional tax returns for those years. This is something I'm not comfortable with and would like to sort out.

My main concern is around penalties. From what I can gather I would have
to pay a max of €1200 for the late filings and then a % of any tax owed.

Is this correct ?

By the way, I do plan to get with an accountant in the next few weeks.

Thanks for any advice.
Click to expand...

Confirm you are a soletrader and not a company?
 
munstermike said:
Hi,

Sole trader

cheers
Click to expand...

The 1200 penalty only applies to Companies

If their is tax due on 07 and 08- The penalty/surcharge is 10% of tax due on this.(may charge interest but highly unlikely)

Did you ever file a Tr1 for tax registartion at the time. If not maybe get it backdated and file outstanding returns

File form 11

or

file 12 form for the two years

Put employee p60 plus self employed earning on return
 
Thanks for the very prompt advice !

Sounds like the form 12 is the way to go. I've never filled in a TR1 - not charging VAT..

Thanks again
 
Based on what you have said I doubt very much if there will be any liability, penalty or interest in this case.

Don't forget that you can carry your losses fwd from 07 & 08 and set against any profit in 2009. Also claim capital allowances (depreciation) on any equipment you have.
 
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