Behind on Personal Returns

Folks,

much to my shame, I am behind on my personal tax returns.

I need to put them right.


I became a director of a company in 2005 although I do not have a shareholding.


My salary is taxed under the PAYE system and taxation has been paid in full.


However, I have been letting a property since 2005 also. I am registered with the PRTB since day one of rental.

My allowable costs in relation to the investment property have been more than the total rents received for each year. So I will have a nil tax liability in relation to this.

Obviously, I intend to get an accountant to make the returns for me so that I can be square with the taxman. I just need to get an idea of how much penalties and interest that I will be hit with so that I can ensure that I have the funds to pay.

Will penalties be based on the complete tax that I paid for the relevant year ? (ie including my PAYE tax). Or is it based on the amount that I did not pay (in this case zero).


Don't bash me too much lads/ladies. I just let it fester as I knew I had no tax to pay in relation to the rental income. Can't have it hanging over my head any longer. There is enough gloom around.


Many thanks.

While the Revenue can impose flat rate penalties for the late submission of returns, they rarely do this.

The other (automatic) penalties are based on your tax liability and, as a non-propriatary director, this is your tax liability after PAYE. So, in your case, no penalties should apply.

Many thank Nige.

I really do hope that you are correct.

Could do without the stress of having to fork out more money that i don't currently have. Depending on the amount, I'd have to get a loan (if I could) to pay any fees and interest.

Once I get this out of the way, it is along the straight and narrow for me.

There is something about the taxman that scares the bejesus outta me.

catch-up said:

There is something about the taxman that scares the bejesus outta me.

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They would be delighted to hear that. If the taxpayer had no fear of Revenue then they must be doing something wrong.

You really shouldnt have any fear for the Revenue Commissioners although I guess nowdays they are being a lot more strict in their dealings.
However you will be delighted to hear that if you have no tax liability you will not be charged penalties or any interest but as the Revenue are clamping down on landlords you should get on top of the matter asap. Check out [broken link removed] they might do you a good deal if you email them!

Clairesposts said:

Check out [broken link removed] they might do you a good deal if you email them!

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As you've recommended that website in a few posts you might please indicate whether you have an interest in that site per posting guidelines. Thanks.

Graham_07 said:

They would be delighted to hear that. If the taxpayer had no fear of Revenue then they must be doing something wrong.

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I have no fear of Revenue, and I don't think they are doing anything wrong. I am fully tax-compliant, but sometimes file my returns very late indeed, even later than OP (most of my income is taxed under PAYE, but some years I have had non-PAYE income to declare, so my situation parallels that of OP).

The Revenue generally are quite reasonable. If you are trying to do the right thing, they are satisfied with that, even if you are a bit tardy. Penalties are invoked in cases where people are not making an effort to co-operate.

If you are late with your income tax returns the revenue will instruct the state solicitor to issue proceedings for attendance at court. Once this instruction is issued your only option is to attend the court, even if you have the return submitted. The judge will fine you anything from €750 to €3,000 and your solicitor will also send you a nice bill. 06 late filers were summonsed in December 2008. The summonses are coming quicker each year.
Solution: FILE YOUR RETURN ON TIME. ITS NOT DIFFICULT.