Preliminary Tax?

J

JollyRoger

Registered User
Messages
18
I think I messed up my taxes. I set up a company Feb 2012 and have been file vat and leaving my tax in the account to be paid this month. This was the way I understood it.

When I went to sort it all out I suddenly noticed something I think I missed preliminary tax. From what I read it seems I have to pay next years tax,last years and this years? Is this right?

I simply don't have the money to pay all of next years projected tax if this is the case. If that is the case can I arrange something different.

I am an IT contractor so it is just money I earn not really a company.
 
JollyRoger said:
Thanks very helpful
Click to expand...

Well what he said is actually hugely relevant, if not framed in a very helpful way.

If you're trading through a Ltd company then you file as a director, and assuming you've operated PAYE on your salary from the company then you actually won't owe any preliminary tax.

If you're not trading through a Ltd company, then you're a sole trader, and your tax situation is drastically different.

So you need to be clear on what exactly your trading vehicle is before you can get the help you want.
 
It is a limited company sorry if that wasn't clear. I am a director.

I had another read of the revenue site and it seems I do pay the preliminary tax for the remainder of this year and pay taxes for 2014 next year again doing preliminary tax for the last months of the year and also any extra on 2013.
 
JollyRoger said:
It is a limited company sorry if that wasn't clear. I am a director.

I had another read of the revenue site and it seems I do pay the preliminary tax for the remainder of this year and pay taxes for 2014 next year again doing preliminary tax for the last months of the year and also any extra on 2013.
Click to expand...

As a director, you pay tax on your income from the company through PAYE - at least you are supposed to - do you know if you have been?

If you have correctly operated the PAYE system on your income from the company, and if you don't have any other investment/rental etc. sources of income, then you shouldn't owe any income tax (and therefore nor should you owe any prelim. tax).
 
I have a feeling that the OP is talking about the Preliminary Tax for the Corporation Tax not Income Tax

Maybe I'm wrong?!?
 
I have just been leaving the tax deductions in the business account expecting to pay them this month. I never saw a PAYE part on ROS to pay this. Have I really messed it up?

Just talking about income tax
 
Not really.

Have you calculated the salary you paid yourself from the Company? Once you calculate that it will tell you how much you need to pay Revenue for the PAYE for 2013. As you are an employee of the Company (albeit a director) there is no requirement to pay Prelim Tax on the income received from the Company (you may have to pay it depending on other income you may have)
 
The calculations are all done each month leaving no profit in the company. I guess I am now worried I didn't pay the PAYE stuff in 2012 as I thought I paid it this year with this years tax too.

I want to get it out of my account and just pay the tax.
 
You own a company and you are a director and the only employee. The company pays you a salary every month after deducting PAYE etc. Is this PAYE etc ( tax) not paid every month to Revenue? Who actually calculates your salary every month?
 
Yes I have an accountant to check I will have everything filed correctly but he does not do my accounts each month. I came here to see if people could enlighten me before I put everything together to send to him
 
ok - just wondered - I think it best you talk to him as he will clarify everything for you
 
JollyRoger said:
Yes I have an accountant to check I will have everything filed correctly but he does not do my accounts each month. I came here to see if people could enlighten me before I put everything together to send to him
Click to expand...

Well it looks like one of his first jobs is going to be trying to persuade the Collector General's office not to charge interest on PAYE/PRSI some of which is overdue by more than a year at this stage! :eek:

You might also want to have him review any motor / mileage / subsistence expenses the company has paid you, in light of recent Revenue scrutiny in this area. See other threads on this forum... http://www.askaboutmoney.com/showthread.php?t=180843
 
You must log in or register to reply here.
Back
Top