Preliminary Tax help!

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peterh

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I am so confused with how to calculate my preliminary tax. I have to relook at my preliminary tax for 2011 I under paid it.

1. I am a director of my own limited company and I am the only person drawing a wage from it. I have no other income, I am not married and have not children.
2. In 2011 I was paying my P30 for income tax through my company. So by Oct 2011 I had already paid 75% of my income tax bill for 2011.
3. When i submitted the form 11 I had over paid tax for 2010 so I got tax back.

My question on the preliminary tax is how to calculate it based on the fact I have paid income tax via the p30s

If I go for the 90% of the current year...I had already paid 75% of my income tax by oct 2011 through the p30s. Should I of paid the additional 15% to bring it to 90% of the current year.... but then as the limited company submitted the P30 and P35 in Jan of 2012 would that mean I would have to claim back the 15% I had paid in Oct 2011. Or do I get the limited company to under pay tax in the p30s and p35?

or- - -

If I pay 100% of the tax liability for 2010 should I of paid the entire tax liability for 2010 plus USC as if it was paid in 2010 less what has been paid in 2011 through the P30s?
 
peterh said:
I am so confused with how to calculate my preliminary tax. I have to relook at my preliminary tax for 2011 I under paid it.

1. I am a director of my own limited company and I am the only person drawing a wage from it. I have no other income, I am not married and have not children.
2. In 2011 I was paying my P30 for income tax through my company. So by Oct 2011 I had already paid 75% of my income tax bill for 2011.
3. When i submitted the form 11 I had over paid tax for 2010 so I got tax back.

My question on the preliminary tax is how to calculate it based on the fact I have paid income tax via the p30s

If I go for the 90% of the current year...I had already paid 75% of my income tax by oct 2011 through the p30s. Should I of paid the additional 15% to bring it to 90% of the current year.... but then as the limited company submitted the P30 and P35 in Jan of 2012 would that mean I would have to claim back the 15% I had paid in Oct 2011. Or do I get the limited company to under pay tax in the p30s and p35?

or- - -

If I pay 100% of the tax liability for 2010 should I of paid the entire tax liability for 2010 plus USC as if it was paid in 2010 less what has been paid in 2011 through the P30s?
Click to expand...

Wow, you've really tied yourself up in knots on this one.. I haven't even fully digested what you've written there! :D

The bottom line is that if your sole source of income is your PAYE income from the company, and you're satisfied that the tax is being correctly operated through the company payroll then your Preliminary tax will be nil.

All that fiddly stuff for 100% of previous year or 90% of current year etc... really only applies where people have income that isn't subject to PAYE. Otherwise, as I think your post alludes to, you would end up in the ridiculous position of having to pay your income tax twice and then get a refund after year end.
 
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