Large Tax Bill Can't Pay in full

Stupidly & unknowingly added an extra zero while doing our tax return in 2009. Before submitting it i did ask someone to look over it and they didnt pick it up either our reasoning was that these were my husbands unused tax credits for the previous 4 years. I had never submitted a return before.

This year had a liability that was incorrect and called into the local reveue...in the process they uncovered the mistake of 2009...I have no problem with it and will pay it back however it is in excess of 10k and we don't have it.

Bill came today 7 days to pay...I have been advised by friends to contact collecter general and ask for a payment plan...has anyone experience of this What do we do and how long do you think they will give us to pay it back e.g. 10 years / 6 mts.

Thanks in advance of any help tips etc.

What do you mean added a zero?

Interest in these cases can really add up .

Was it a form 12 or form 11 you submitted. They may restrict your credits for 5 years or get you to sign up to an installment arrangement but that has interest of 8% per annum.

What was the error as I think that might shape their view.

Joe 90 Thanks for your reply
when inputting Paid PAYE I put in 11510.0 instead of 1161.0 (I actually got 2 digits wrong feeling very foolish)
The tax official we dealt with on the morning really believed we made a mistake.

Do you think they will give us an option on restricting tax credits or installment arrangement?

Do we write to them or call them?

Thanks again for your help

Form 12 is generally no penalties. Form 11 is trickier so we need the answer to that first. However, revenue are not blood thirsty animals and will generally come to an arrangement with you as long as you come across as not a chancer and be reasonable with them.

Get an accountant. You didn't think it unusual to out-of-the-blue receive EUR€10,000? You need an accountant - not a friend, but someone you pay to do this for you. And quick.

It was form 11 we needed a tax clearance cert to rent our apartment to the council it is the only reason we did any of this.

Yeah we did think it was unusual however we thought it was four years of back payments. as my husband didn't use all his tax credits. The friend at work was an accountant but that doesn't matter anymore we owe the money.

Thanks for yer replies...please be kind!

Best advice anyone here can give you is to get an accountant, preferably a member of the Irish Tax Institute (they'll have the letters AITI or CTA amongst their other letters), to engage with the Revenue for you and tell you your options.

Does anybody know is the interest applied on a compounded or simple basis?

Kildavin said:

Best advice anyone here can give you is to get an accountant, preferably a member of the Irish Tax Institute (they'll have the letters AITI or CTA amongst their other letters), to engage with the Revenue for you and tell you your options.

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That's a bit weird. Any practising accountant should be ok for this job. (Btw, CTA's aren't members of the Irish Tax Institute).