preliminary tax 2010 not paid

A

aristotle

Registered User
Messages
914
Hi,

I have submitted a form11e for my 2009 self employed income (which was €0 for 2009). I am a PAYE earner as well.

Due to my ignorance I didn't pay any preliminary tax for 2010. My self-employed income for 2010 will be around €3500 and I'll be putting as much as I can into a PRSA\pension in order to minmise tax.

My questions are:
1) Should I pay some preliminary tax before the deadline at the end of this week?
2) Can I pay it even though I have sent off the form11e already?
3) If I don't pay it how harsh are the penalties?

Thanks
 
Forgive my ignorance, but if you paid zero tax in 2009, was your preliminary for 2010 not capable of being computed at 100% of your 2009 liability - i.e. zero?

Please don't take my view on this as gospel - look it up, as I may be very wrong.
 
Found this on the web: So it sounds like you are correct. I'll have to ring revenue later.

The amount of Preliminary Tax paid for any year is not less than the lower of:
90% of the final liability for the current tax year
The final liability to tax for the immediately previous year (100% Rule) or
105% of the final liability for the pre-preceding year where the Collector- General is authorised to collect tax by direct debit.

Tax flow can be improved by choosing which preliminary tax to pay.
 
Did you receive a "Pay and File Reminder" from Revenue. You should complete and return that form with your payment
 
Yes thats what I did.

But I am not sure on the preliminary tax issue, looks like I am ok to pay €0 preliminary tax for 2010 because I have €0 earnings\tax in 2009?
 
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