Income Tax Return

Hi guys,

I hope one of you guys can help me out on this.

I am a director of a limited company with over 51% of shares which I set up on 2012 so I am due to file my first return as self assessed this year.

I also have a day job with a company as employee on which I have been for almost 15 years and I am not a director or anything; I pay PAYE, PRSI and USC like any other employee.

I took no income or touch any moneys from the company I own in 2012, neither in 2013 ( I did not pay myself a salary although the company invoiced around 16k to customers)

The question is: What would be my tax liability for this year?
Do I need to pay the minimum self employed levy of 500 euro or it is already offset against my PRSI returns as employee with my day job?

Also last year as it was my first year with the company I filled no personal tax income return but I have been reading the forum and some people have indicated that I should have sent a payslip with 0 as preliminary tax on 2011 (This was missed by my accountant if this is correct, it is no were stated on the revenue website either)

If I have to pay the minimum self levy of 500 euro and the revenue applies a penalty for non paying it as preliminary tax then, what would be the amount to pay including the penalty?

500 x 0.0219% x 365 = 39 euro? (Is this correct??)

Do I need to pay preliminary tax on this levy for 2013?

Thanks to the gurus in advance.

Ken.

I was in a similar situation and registered as a PAYE employee of the Ltd Company, self assessment will not apply to you.

There is no personal tax liability if you take no income from the Ltd Co.

Palerider said:

I was in a similar situation and registered as a PAYE employee of the Ltd Company, self assessment will not apply to you.

Click to expand...

A proprietary director of an active company is required to file a Form 11.

There is no personal tax liability if you take no income from the Ltd Co.

Click to expand...

This is assuming that PAYE is properly operated on the other income, if you have no income then you will have no liability on that income.

And yes, the minimum PRSI you have almost certainly already paid by way of your PAYE job. Unless you were on very low pay there.

Hi Gurus,

Thanks for the help, all good news then!

Just for the sake of completeness, would the calculation for preliminary tax penalty be correct if for instance the liability of PT was 500 e?

500 x 0.0219% x 365 = 39 euro? (Is this correct??)

Thank u,
Ken.

It's not a penalty it's an interest charge. If earn more than 5k you have to pay min PRSI of €500. You would have paid €200 PRSI under PAYE any way so the interest would be changed on the difference.

Hi Joe_90,

Understood, thanks a lot for the answer.

My question is if the formula of calculating the interest charge is correct?
In the example you put the difference is 300 so: 300 x 0.0219% x 365 = 24 euro?

Thanks again,
Ken