Tax audit question

J

jmurphy

Registered User
Messages
23
I made some stupid mistakes back in 2016 and 2017. I was PAYE but I had some additional income (and had expenses as well) via a payment gateway into my Bank of Ireland account. the net was something around 5k for both years (payments - expenses). this was not declared in revenue.

i haven't received any letters/notifications from Revenue yet but I'm wondering what's the best way to approach this. do you have any suggestions?
 
There used to be a form 12 which was required for anyone on PAYE that had additional income of less than 5k. This could be back paid with little or no penalty. I've heard this has changed since but maybe someone can verify ?
 
elcato said:
There used to be a form 12 which was required for anyone on PAYE that had additional income of less than 5k. This could be back paid with little or no penalty. I've heard this has changed since but maybe someone can verify ?
Click to expand...
so you are saying I can use form 12 now to declare income i had back in 2016 and 2017?
 
Are they available in your MyAccount services ? Not sure how far back they go. You do want to approach the matter so I'd start there. As I said they tend to be far more lenient on penalties for these.
 
elcato said:
Are they available in your MyAccount services ? Not sure how far back they go. You do want to approach the matter so I'd start there. As I said they tend to be far more lenient on penalties for these.
Click to expand...
2016 is not, 2017 is available
 
jmurphy said:
I made some stupid mistakes back in 2016 and 2017. I was PAYE but I had some additional income (and had expenses as well) via a payment gateway into my Bank of Ireland account. the net was something around 5k for both years (payments - expenses). this was not declared in revenue.

i haven't received any letters/notifications from Revenue yet but I'm wondering what's the best way to approach this. do you have any suggestions?
Click to expand...
Make an unprompted qualifying disclosure per the below link. That's what it's there for.

What is a qualifying disclosure?

Information about prompted and unprompted disclosures. Introduction to disclosure for foreign income and assets.
www.revenue.ie www.revenue.ie
 
jmurphy said:
2016 is not, 2017 is available
Click to expand...

For simplicity, I would declare both for 2017. And put in a note - "As the 2016 version is not available, I have included my profits for both years in 2017"

Revenue is quite practical. They are unlikely to set the dogs on you for an honest mistake which is self-corrected where the tax is paid and is "only" €5,000.

Brendan
 
As long as it doesnt relate to offshore assets/investments then unprompted declaration will incur little penalties if any, interest at 8% per year should apply,
Best to either include in 2017 or make unprompted declaration.
 
This isn't an unprompted disclosure, as that would require an incorrect return to have been filed - it's simply the late filing of a return.

OP needs to figure out whether they're a chargeable person or not (5k of net assessable non-PAYE income being the threshold AFAIK), and file the appropriate form.

Form 12 for 2016 is available in a hard copy / PDF if needs be.

If OP is a chargeable person they'll need to register for income tax with effect from 2016 and will then be able to file outstanding Forms 11 on ROS.
 
I would just file a tax return like mentioned above. Paper copies of Form 12s are fine. A voluntary disclosure is not required and I wouldn't advise it. In the current environment you may not even be charged interest.
 
torblednam said:
This isn't an unprompted disclosure, as that would require an incorrect return to have been filed - it's simply the late filing of a return.

OP needs to figure out whether they're a chargeable person or not (5k of net assessable non-PAYE income being the threshold AFAIK), and file the appropriate form.

Form 12 for 2016 is available in a hard copy / PDF if needs be.

If OP is a chargeable person they'll need to register for income tax with effect from 2016 and will then be able to file outstanding Forms 11 on ROS.
Click to expand...
Thank you so much.

Could you help me understand what "net assessable income" means? Is it income - expenses?
 
torblednam said:
Yes, it means the amount of income that you're assessed to tax on. So in a simple case like yours, income less expenses
Click to expand...
Thanks a lot @torblednam

One last question, since the assessable income was less than 5k for 2016, can I just fill out the Form 12? Should I then upload it on Revenue myAccount?

Just to clarify again: I was PAYE in 2016 and 2017 (PAYE tax paid fully, I have P60 as well) but I had some additional income that I want to declare. Is it still just a late return or should I do an unprompted declaration?
 
It's a late return.

The distinction is somewhat technical but relates to penalties, surcharges etc, and in essence, if you never filed a return previously then by definition you don't have a disclosure to make, you're just several years late filing a return.
 
torblednam said:
It's a late return.

The distinction is somewhat technical but relates to penalties, surcharges etc, and in essence, if you never filed a return previously then by definition you don't have a disclosure to make, you're just several years late filing a return.
Click to expand...
Makes sense. thanks a lot!
 
You must log in or register to reply here.
Back
Top