Preliminary amount for 2009 exceeds actual amount

[xanadu1]

Hi
Last year, I paid an amount of preliminary tax for 2009 which exceeds the actual amount owed. I'm currently filling in the Form 11 on the Revenue's website. I'm being asked to give a preliminary amount for 2010 (the same as the actual amount owed for 2009, I assume) and a balancing amount for 2009. Given that the balancing amount is a negative number, how do I fill this in?

 

[xanadu1]

I also noticed another minor oddity. In the calculation I've been given at the end of the process, it seems to be charging me the income levy at 1.67% on my total income for 2009, then deducting the income levy I'd already paid on PAYE. Which is all very well, but wasn't the income levy for 2009 lower for the first few months?

 

[Graham_07]

The refund for 2009 is handled by putting a tick in the box next to the "balance for 2009" box. That then deducts the amount from the 2010 Preliminary and you pay the difference.

Regarding the Income Levy, for self-assessed taxpayers ( even those with PAYE nicome also) the composite rate for 2009 is 1.67%. It is not practical to split all income into a per and post 01/05/09 period. This may beneficial or not to some taxpayers depending on how their income accrued in the year.

 

[xanadu1]

Ah, thank you, I totally missed that option.

One more question; assuming that I want to pay 100% of the liability for 2009 as preliminary tax for 2010, should I simply pay the final liability, or do I need to take into account the changes to the income levy?

That is, say, assuming a liability of 5000 for 2009, should the preliminary tax for 2010 just be 5000, or should it be (5000 / 101.67) * 102 = 5016, that is, the liability with the old income levy removed and the new one applied? Or something else entirely?

 

[Graham_07]

Ah, thank you, I totally missed that option.

One more question; assuming that I want to pay 100% of the liability for 2009 as preliminary tax for 2010, should I simply pay the final liability, or do I need to take into account the changes to the income levy?

That is, say, assuming a liability of 5000 for 2009, should the preliminary tax for 2010 just be 5000, or should it be (5000 / 101.67) * 102 = 5016, that is, the liability with the old income levy removed and the new one applied? Or something else entirely?

The Revenue guide on the Income Levy has a new note at part 3.8 where it states

"..... where the individual wishes to pay preliminary tax on the basis of the 100% of the previous year liability then their payment should be on the basis of the final liability for the year 2009, including levy calculated at the composite rates. This is on the fact that the composite rate was the charge to levy for 2009."

So you can take 100% of 2009, without any further adjustment for the change in the Income Levy to 2%.

2009 Preliminary Tax was different. Then, you had to take into account the levy+2008 final as there was no levy in 2008. There is a levy in 2009 ( being the composite rate) so 100% of 2009 will do.

 

[xanadu1]

The Revenue guide on the Income Levy has a new note at part 3.8 where it states

"..... where the individual wishes to pay preliminary tax on the basis of the 100% of the previous year liability then their payment should be on the basis of the final liability for the year 2009, including levy calculated at the composite rates. This is on the fact that the composite rate was the charge to levy for 2009."

So you can take 100% of 2009, without any further adjustment for the change in the Income Levy to 2%.

2009 Preliminary Tax was different. Then, you had to take into account the levy+2008 final as there was no levy in 2008. There is a levy in 2009 ( being the composite rate) so 100% of 2009 will do.

Ah, I that passage, but wasn't confident in my interpretation. Thank you for the help. I must say I'm sort of amazed how helpful some members here are.