Help me understand my tax!

C

culabula

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Hi there,

We're new to ireland - both born here but grown up elsewhere, back living here for the first time.

Looking for a very rough ballpark tax due figure on the following scenario in 2018 tax year:

Partner A has had both PAYE & self employed income, he earned about 15k PAYE, with 900 taken out as tax & PRSI etc; and about 10k self employed, no tax or anything paid yet.
Partner B has earned about 12k self employed, no tax or anything paid yet.

These figures are our forecast total income for the year.

We've 2 primary school aged kids, if that's relevant.

We do have an accountant & have sent him our details to file a return, but want to get an idea how much cash we will have to rustle up and whether to panic or not!

Also, will Revenue just 'know' we are married if we married in another country and arrived here already married? Or do we need to separately inform them?

Thanks for any quick help anyone can offer. This is doing my head in as I'm not sure if there's a huge bill looming or not.
 
Oh sorry - these are for 2018 so it would be paying the forward tax in October for 2018.

2017 is fine, we were not here the whole year and the self employed was just a little on the side so not much liability, a few hundred at most. It's 2018 I'm worried about - my other half was PAYE and then contracting through the same company and I had just assumed he was PAYE for the lot! He's terrible with money and I only just realised he was contracting so much. I'd some money put aside to cover tax but now I'm worried it won't be enough.
 
If all of your combined incomes were from self employment,your combined tax liability would be €3,725.
I think with the partial PAYE income,your partner's tax liability should be a few hundred less.
Taking into account the €900 already paid,I'd say you would need at least 2.5k to settle your 2018 preliminary tax bill.
 
Ouch! I've only €1500 put aside towards it.

OK well it's at least good to know in advance - I think if I'm careful I will be able to cover the rest, if we can hold off to the mid Nov online filing date. Fingers crossed some of my invoices get paid in time!

Note to self: Make sure other half keeps records and put money aside for tax next time!

Thanks vandriver.
 
Revenue do a direct debit scheme where you can pay a set amount each month,which is credited against your preliminary tax come November.
You can also opt to pay 100% of last year's tax as a preliminary payment,which might give you a cash flow advantage(but a bigger bill in 2019).
(Obviously be guided by your accountant on the best option)
 
oh ok, that's good to know as well. I will wait & see what accountant recommends, but certainly paying 100% of the previous one and then making up the balance over the course of the year would be preferable for us over finding the whole lot 4 weeks from now.
 
culabula said:
We do have an accountant & have sent him our details to file a return, but want to get an idea how much cash we will have to rustle up and whether to panic or not!

Also, will Revenue just 'know' we are married if we married in another country and arrived here already married? Or do we need to separately inform them?
Click to expand...

Somewhere in the vicinity of €2,500 looks about right.

Revenue won't know about your marriage unless you tell them. There's an assessable spouse form on revenue.ie somewhere that you can send in to register it with them. Joint assessment would look like the best way to go based on the earnings above.
 
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