Question about Preliminary Tax - Self Employed

J

JohnCash

Registered User
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Hey all,
I am sorry if this has been asked before but I am in a bit of a panic.

I received a letter today stating that I owed the entire amount of my tax for the year 2015 and it has to be paid within 7 days. I assumed I owed the total amount for 2015 at the end of Oct.
I was confused by this and assumed I made the mistake of filing my return for the wrong year.

When I spoke to revenue they stated it was because I hadn't my preliminary tax paid up for 2015.

Obviously this is my mistake as I had assumed that preliminary tax was optional and was a way of reducing the tax bill for the following year.

I have always paid everything on time - I am never late with my VAT and I had assumed I was never late with my tax. I always filed my return during the year and had the total paid before the end of Oct. I never paid preliminary tax as I struggle with paying everything as it is!

I will most likely be able to pay this amount they are requesting on time but I am worried about next year. There is no way I will be able to pay the whole of 2015s tax and also the same again as preliminary tax for 2016 at the end of this month.

Can anyone give me some advice on this situation?

Thanks.
 
Preliminary Tax is not optional, it's compulsory. I don't know what else to say that might be useful.
 
1. Its good you can pay 2015.
2. For 2016 , not a huge deal not having all gathered today , suggest set up DD with revenue as soon as possible that sorts (due) tax + a little bit ongoing ,in that way @ worst you will gradually get ahead.Indeed if you talk to Revenue explain your issue they ,inspite of what you hear are quite fair.
 
Gerry Canning said:
1. Its good you can pay 2015.
2. For 2016 , not a huge deal not having all gathered today , suggest set up DD with revenue as soon as possible that sorts (due) tax + a little bit ongoing ,in that way @ worst you will gradually get ahead.Indeed if you talk to Revenue explain your issue they ,inspite of what you hear are quite fair.
Click to expand...
Gerry - thanks for this response.
I will get 2015 paid asap and put what I can for 2016 preliminary. I will setup a dd with Revenue then to get caught up.
I suppose the reason they are demanding the money is that I had 0 preliminary paid at all.
 
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