Preliminary Tax

Form 11 Pay and File. If I have a far lower Non PAYE income this year than last. Do I still have to pay preliminary tax based on last years (or pre preceding year) Non PAYE Income ?

Non PAYE income this year will also be less than 5k.

Many thanks.

No, you can estimate what your non-PAYE income will be for this year, calculate what tax is due and pay preliminary tax based on that.

As long as your are within 90% of the actual tax due when that is known at the end of the year, no penalties will be due

jpd said:

No, you can estimate what your non-PAYE income will be for this year, calculate what tax is due and pay preliminary tax based on that.

As long as your are within 90% of the actual tax due when that is known at the end of the year, no penalties will be due

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That's great news. Thank you for the swift reply. Very much appreciated.

As an aside, I've always been outside the 90% tax due as I have had a somewhat unruly income due to the vagaries of the stock market. I pay any add'l tax due immediately and so far Revenue have not penalised me. In fairness, I'm usually returning well in advance of the cut-off date, so maybe they cut me some slack.

They aren't really gong to chase you for a few hundred or a few thousand euro in late paid taxes - as long as you can show that it was a genuine error or mistake.

They have bigger fish to chase