Preliminary Tax

[dodo]

This is in relation to investment House
I got a Pay and File payment reminder this morning in the post, I owe no tax for 2008 but how do I work out the preliminary tax for 2009, there is still 3 months left and I also might need to deduct more money in the next 3 months, ie if I get leak in house or need to get something fixed how do I go about that.
Also I have to get the house rated by the end of the year, can I claim for that aswell. thanks

 

[Breninio]

Your preliminary tax for 2009 can be based on 90% of your 2009 liability or 100% of your 2008 liability. If you had no tax liability for 2008, then there is no preliminary tax due for 2009.

 

[John Rambo]

Not necessarily. When basing your PT payment for 2009 on 100% of your 2008 liability you must account for the income levy (i.e. work on the basis that the income levy did apply in 2008).

 

[Breninio]

The OP stated that the query related to an investment property and there was no taxfor 2008. Therefore I made the assumption that there was no other income or only income subject to PAYE and that there was a rental loss on the property in 2008. I am very aware of the requirement to adjust for the income levy when using the 100% basis. However if there's no income to apply the adjustment to then the issue doesn't arise.

 

[John Rambo]

The OP stated that the query related to an investment property and there was no taxfor 2008. Therefore I made the assumption that there was no other income or only income subject to PAYE and that there was a rental loss on the property in 2008. I am very aware of the requirement to adjust for the income levy when using the 100% basis. However if there's no income to apply the adjustment to then the issue doesn't arise.

I wasn't having a go at you...but you did say "If you had no tax liability for 2008, then there is no preliminary tax due for 2009". That isn't necessarily correct. And even if you're "very aware" of the requirement, many others seem not to be aware at all.