Declaring to tax man???

J

juleno

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I inherited 400K 3 years ago. As we never had that kind of money we didn't know what to do, so shoved it into a savings account and at the end of the year got something like 100 euro interest. We thought great,Duh!!!!It was only when one day the bnk clerk alerted us that we should have that money in a different account, got nearly 2 K interesta month instead. So i started looking into things a bit better by logging on to this site etc, have now spread the money accross lots of different finacial instituions. As a result I became a stay at home mother while my children are still very young and not at school yet, which I am blessed for cause money wise wouldn't have been able to before this, but with the security in the bank,we decided to go for it. We don't touch the money really, odd time , a holiday ,change of car, full stop. My 2 siblings also inhereted the same and my brother mentioned to me about declaring this to the tax man the other day, well I completely paniced, I knew before we got the money the tax was paid, we pay dirt tax on our savings . I just keep thinking I'm going to get into all sorts of trouble. What do I do, my family know all about money, they end up taking the **** out of me and then I feel I can't ask their advise. My husband , doesn't know what we have to do either. My husband is self employed, and also has a job part time, I have stopped working since my maternity benefit
 
Can you be more specific in terms of how you have inveted the money, is it in standard savings accounts, investment plans or what?
 
If you paid the inheritance tax (for example actually were willed €500,000 and came away with €400,000) then the important tax is paid.

If your husband is self employed (or anyone for that matter) you should have been declaring the interest earned as income over the past two years. Therefore not the end of the world as the most you could owe is 42% of interest earned + a bit of interest or pentalty.
 
Why would you declare to the tax man? If you have distributed the amount over various financial institutions, you'll be paying DIRT anyway.
 
My understanding is if the amount is in various financial institutions banks biulding socirties Credit Unions etc, you will be paying DIRT (DIRT deducted by fanancial institution and balance credited to your account) but you have to declare the gross interest received (total interest received) to revenue. There is no further tax liability.
 
Thanks, sorry my computer has been acting up so been a while since I posted.
Money is split into Northern Rock, EBS and Investec and Anglo Irish. Tax was dedeucted before we got the cheques, so that tax was sorted , to my knowledge, the tax to be paid is on the interest of these savings. My husband looks after business finances , I look after family finances, all his wages go into my account and I pay the bills etc.He has an accountant that deals with the business, and our tax returns, but as this is a bit of a surprise to us , I don't know what to do in this regard as its our personal savings not business. I will contact the citizens advise bureau, c if they know how I find out how much I owe, cause how would I work it out as money has been swopped around a few different places in the time we got it.
 
If you are jointly assessed under your husband's name, then you will probably owe PRSI and health levy on the deposit interest, but by the sound of what you've said, you've already paid the inheritance tax and DIRT so PRSI/Health may be the only outstanding liability. You should have your accountant take a look at the personal element to it - if your husband is a sole trader and you are jointly assessed, it all goes into the same income pot for tax purps anyway.

You should contact the financial institutions (past and present) and ask for a statement of interest paid and DIRT withheld for the relevant periods - that will give you the base info you need to file a return on it. Have a word with your accountant first though just to make sure that it hasn't already been included (in which case, you've no problem at all).
 
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