Just received my tax assessment notice - all my expenses were ignored

Hi All,

This is my first year declaring extra income tax (for the tax year 2008), i am also a PAYE worker so i just filed a form 11E about 2 months ago. I received the notice of assessment on Friday and i was absolutely livid when i read it.

They've added all my earnings up no problem and even been kind enough to charge me extra PRSI and a health levy despite the amount i've already paid through my full-time employment, but despite detailing over €3,000 worth of expenses (2000 capital, 1000 bills), they haven't given me any rebait on it. I was under the impression that i'm due 10-12% back on all expenses and at a time when the government are scrambling for money wherever they can get it i can't help but think it's a deliberate oversight.

I know it's only 300 odd quid, but that's actually a decent percentage of what i've been left after i pay this liability and as a principle, if the government aren't due it, i'm not giving it to them.

i'm going to ring them this week and see what can be done but i have a feeling they'll try and brush it off. has anybody else dealt with this before or know what i can do or who i can contact to rectify such a small amount? or am i simply not entitled to the expense returns of sole traders because i'm also a PAYE worker?

It all depends on how you completed the F11E. If this was incorrectly completed then the assessment will be wrong. As this was your first year completing the form are you sure it was correctly done? I'm not saying that you made a mistake but some 85%+ of errors on assessments result from taxpayer error, not Revenue error.

Did you clearly show the income amount after expenses in the Assessable Profit box ? This is the basis for the income on the assessment.

Did you claim Capital Allowances at 12.5% p.a. on the €2,000 of capital expenditure ? This would then show as Wear & Tear on the assessment.

Remember completing the accounts schedule is not sufficient, you must repeat the relevant profit and capital allowances amounts in the boxes reserved for them.

Revenue will not brush you off if you are genuinely due any expenses. If you correctly completed the F11E and it is Revenue who have erred then they will correct it, no problem. They do not have a hidden agenda to "deliberately oversee" items. They seek to collect only what is fairly due.

PRSI and levies are due on additional income up to any relevant ceilings so they were correct to do this and the fact that you paid through your PAYE employment is largely irrelevant.

Hi Graham,

Thanks a million for your help and information. Apologies for the "deliberate oversight" comment, it's a bit harsh but i was venting as it was just completely left out and it struck me as unusual.

The Assessable profit is question 104 on the form and expenses are not mentioned until further down, starting at question 128 so i can only assume that i didnt regard the word "profit" properly and completed this part incorrectly. damn. i'll ring them tomorrow and ask what my options are. I might be looking at incorrect completion fees on it but it's worth a shot.

Again, thanks for your help.