Paying the Revenue :(

[Father_Ted]

My accountant has done up my last 6 months accounts and he says I owe the Revenue nearly 4K. I used to do this every 2 months but things just caught up on me so now I owe 6 months.
Problem is I dont have all the funds right now, and its over due.
I could however easily pay half this now and the rest in 2-3 weeks.
Will the Revenue allow me to do this? I dont want to see Mr Sheriff knocking on my door.

 

[Graham_07]

I presume you mean V.A.T. when you refer to 2 months etc. What's best is get the returns filed with as much as you can afford, Revenue will allocate the payment against the amounts due. Then settle the balance as soon as you can. If you delay too long you will get a letter from Debt Management Section in Revenue threatening action but they are usually amenable if you don't take too long. 1/2 now and 1/2 in 2-3 weeks would usually be acceptable. Remember you may still be liable to interest on late payment if Revenue ever demanded it. Your accountant should be well used to such matters. Talk to them about it.

 

[Father_Ted]

Thanks Graham,
Yes its VAT I am referring to. Problem is when the accountant omits my last 6 months accounts to the Revenue, the Revenue will DD my account for the full amount. This is the way we used to do it. Is there any other way to off set this payment via a different means?

 

[Graham_07]

If you mean he submits on ROS and you have a Ros Debit Instruction set up to make the payment for each return ( as distinct from a monthly dd ), then you can submit the return on ROS without making a payment at time of submission. However this does as I said, run the risk of interest on late payment amounts. You need to discuss these options with your accountant.

 

[Father_Ted]

If you mean he submits on ROS and you have a Ros Debit Instruction set up to make the payment for each return ( as distinct from a monthly dd ), then you can submit the return on ROS without making a payment at time of submission. However this does as I said, run the risk of interest on late payment amounts. You need to discuss these options with your accountant.

Thanks Graham, fortunately for us a couple of long awaited big payments came into us today and we were able to submit our accounts for the past 6 months. I think I will set up a constant monthly dd with revenue as I have done with my sole trader business in the past, it helps with these big surprises! My own fault anyway not to be prepared.

 

[Graham_07]

Thanks Graham, fortunately for us a couple of long awaited big payments came into us today and we were able to submit our accounts for the past 6 months. I think I will set up a constant monthly dd with revenue as I have done with my sole trader business in the past, it helps with these big surprises! My own fault anyway not to be prepared.

Good to hear funds came in. You can go on dd. However if money in is erratic the dd can be difficult to gauge and you must have 80% of the year sliability paid by year end. You can opt back to 2 monthly if you want as another options.

 

[Father_Ted]

Good to hear funds came in. You can go on dd. However if money in is erratic the dd can be difficult to gauge and you must have 80% of the year sliability paid by year end. You can opt back to 2 monthly if you want as another options.

Thanks Graham,
It was much more easier do this via 2 monthly. Why it changed I dont know? Could my accountant of had changed this? Anyway a DD takes away a lot of the surprise whether it meets the full V.A.T. amount or not.

 

[Graham_07]

Thanks Graham,
It was much more easier do this via 2 monthly. Why it changed I dont know? Could my accountant of had changed this? Anyway a DD takes away a lot of the surprise whether it meets the full V.A.T. amount or not.

Revenue tried simplifying the VAT system by putting smaller businesses with lower liabilities on longer return filing. We now have 2,4,6 & 12 monthly. Revenue made this determination. Your accountant would not have. Unfortunately in some cases it has had the effect of larger bills at less frequent intervals and some traders have not budgeted for that.