Income Tax Calculation Query

PatrickJ

Registered User
Messages
170
Just received a rather large income tax bill from my accountant. Sounds excessive. Just wondering can anyone please give some approximate indication of what my liability should be please.

Single person
Self employed gross income of €50,000.00
Approximately €9,000.00 vat paid out of the gross amount.
Expenses of approx. €5,000.00

I am not required to file until the 31st October 2016 but my accountant wants me to file and pay now!

Would appreciate you input please?
 
Thank you Joe. That sounds more like it! I got a bill for just under 15k. A long way off 9k.

Thank you T McGibney that explains it.
 
Some update: I queried the accountants calculations on my income tax return and he tells me he is basing his calculations on the gross amount of €50k minus expenses of €5k. He is omitting the €9k vat paid because I am set up for invoice basis accounting and in summary invoiced my customer €50k in December 2014 and paid the 9K vat liability in December 2014 but did not receive payment until March 2015.

I am completely at a loss and the accountant has no time to give basic accountant skills he numerically illiterate like myself.

Should I get a second opinion?
 
So far the accountant has refused to amend my return and although the €9,000.00 vat was paid (but not accounted for in 2014) he simply wont acknowledge this fact and has refused point blank to rectify??

Having made some enquiries and hearing of clients being left in the lurch at the last minute I am trying to break ties with this company. Cheap fees is not always best!

OK, so I am looking to make my return myself. I am no longer registered for VAT so how do I go about filling this amount without becoming liable again for the 9k?

Any help would be appreciated please.
 
OK, so I am looking to make my return myself. I am no longer registered for VAT so how do I go about filling this amount without becoming liable again for the 9k?

Either you charged people the VAT or you didn't, deregistering for VAT now doesn't change past liabilities
 
Some update: I queried the accountants calculations on my income tax return and he tells me he is basing his calculations on the gross amount of €50k minus expenses of €5k. He is omitting the €9k vat paid because I am set up for invoice basis accounting and in summary invoiced my customer €50k in December 2014 and paid the 9K vat liability in December 2014 but did not receive payment until March 2015.

I am completely at a loss and the accountant has no time to give basic accountant skills he numerically illiterate like myself.

Should I get a second opinion?


So far the accountant has refused to amend my return and although the €9,000.00 vat was paid (but not accounted for in 2014) he simply wont acknowledge this fact and has refused point blank to rectify??

Having made some enquiries and hearing of clients being left in the lurch at the last minute I am trying to break ties with this company. Cheap fees is not always best!

OK, so I am looking to make my return myself. I am no longer registered for VAT so how do I go about filling this amount without becoming liable again for the 9k?

Any help would be appreciated please.

Instead of going from the cheap accountant to DIY tax returns (when you claim to be financially illiterate), why don't you pay someone who is competent and qualified to make sure it is done correctly and quickly?

Although you may struggle to find a decent accountant willing to take on new tax clients at this time of year.

Steven
www.bluewaterfp.ie
 
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