# Income Tax Return



## AJS (2 Oct 2009)

Hi Guys,

Just trying to organise my income tax return for 2008. 

My business accounting year is from 1/03 to 31/02 each year.

On my income tax return i have to submit my income for 2008 however since my business accounts are from 1/03/2008 to 31/02/2009 do i simply include the portion of my business accounts that is for the tax year 2008. For example 1/03/2008 to 31/12/2008 and put put 1/01/2009 to 31/02/2009 as part of my 2009 return and keep going like this.

This is my first year submitting income tax return as i only established my business in March 2008.

I have all my data in order on the computer so it's just a matter of calculating it for the right time period


Thanks,


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## Gervan (2 Oct 2009)

As this is your first year trading, the profit submitted must be that to 31/12/08. But there are two ways of getting to that.
1) If you are determined to keep 28/02 as your year end, work out profits for year ended 28/02/09 and put 10/12 in as 2008 income. 
2009 trading income would be that of year ended 28/02/09, which sounds as though you're being taxed twice on the same profit, I know, but there are reliefs to ensure you do not overpay.
2)You do not have to keep 28/02 as your year end, and can submit actual profits to 31/12/08 if you prefer, and change your year end to December.

If you keep to 28/02/09, the return does not have to be made until 31/10/10, but you should pay any balance of tax due by 31/10/09 ( or 16/11/09 if submitting and paying through ROS).

In your return, and tax calculation, you must include all sources of income for 2008: Paye, rental income, deposit interest etc. not just your trading income.


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## basic (4 Oct 2009)

I have a very similar situation. First year starting in 2008 and original year end is in March 09. Here arises question if the accounting year is left as it is. 

_If you keep to 28/02/09, the return does not have to be made until 31/10/10, but you should pay any balance of tax due by 31/10/09 ( or 16/11/09 if submitting and paying through ROS).
_ 
If the return does not have to be made until 2010 then why revenue has sent Form 11 now and did not receive pay and file payment reminder? Very confusing. Maybe that Form 11 is supposed for year end 2008 (what has to be on actual basis) and then in 2010 I will receive Tax return for 2009 (what will be on 12 month basis)? And I understand that I have to pay full tax for 2008 and prelimenary 90% tax for 2009 by 31/10/09. Am I correct?
Thanks


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## ninak (5 Oct 2009)

I too am in similar position. My year end at the moment is 30/10/09 as we started same date 2008. I am wondering what is the main advantage of changing year end to 31/12/09 as we have been told that a lot of Co.s do change to this date. Is it mainly for convenience with regards to the tax year?


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## Gervan (5 Oct 2009)

Hi basic, when you registered for tax with Form TR1 which date did you fill in when it asked "to which date accounts will be made up"? 31/12 may heve been entered. 
If you want to stick to y/e 31/03/09 just keep the Form 11 safely till needed. ( If you file online you may never use it).

There should be a payslip on the final page of Form 11, so that you can pay your 2008 income tax liability and 2009 prelim. by 31/10/09 as you say.


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## Gervan (5 Oct 2009)

ninak: are you a sole trader or limited company?


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## ninak (5 Oct 2009)

Sorry, should have said I am a Ltd Co.


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## basic (6 Oct 2009)

Gervan said:


> Hi basic, when you registered for tax with Form TR1 which date did you fill in when it asked "to which date accounts will be made up"? 31/12 may heve been entered.
> If you want to stick to y/e 31/03/09 just keep the Form 11 safely till needed. ( If you file online you may never use it).
> 
> There should be a payslip on the final page of Form 11, so that you can pay your 2008 income tax liability and 2009 prelim. by 31/10/09 as you say.




Thanks Gervan for reply. So I understand I have to fill in Form 11 only next year for 2008 and 2009? Why revenue would send it now? Or they do not seperate startups and others?


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## Gervan (6 Oct 2009)

basic, Revenue printed out all the Form 11 2008 together, and sent them. As you say, no differentiation. On your file the return due date will be 31/10/2010. 
Every year the Form 11 seems to gain more pages, so the Form 11 2009 will be different.


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## Gervan (6 Oct 2009)

ninak, when a Company changes year end to 31 December, it is to make admin easier, so all invoices being handled would have the same year etc. 
Usually the first trading year would be shorter, so a startup in Feb would have a ten month set of accounts. It could also give more time to work on the accounts before having to submit to the CRO; Annual Return Date is 6 months after the registration of the company.
In your case I think it would make things more complicated. Extending the yearend to 31/12/09 would mean your first set of accounts being 14 month, but CRO I believe do not accept accounts of more than 12 month duration. If you tried to file accounts to 31/12/08 now you would probably run into fines for late submission. Then, there would be less time to work on accounts between 31/12 and the ARD, though this can be extended by up to three months.
I would leave your year end as is.


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## basic (6 Oct 2009)

Gervan thank you so much for your help.


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## ninak (8 Oct 2009)

Thanks Gervan. I have been thinking that it was better to leave the ARD as is, but wanted to check it was the right move.


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