Filing deadline for 2008 return

[Usjes]

Hi,

I am mostly PAYE but due to a share scheme at work I had to fill out a full tax return for 2007, which I filed shortly after the deadline in Oct. 2008, I subsequently got a notice early this year saying I got the calculations slightly wrong and a payslip to pay the balance. I paid this and assumed I wouldn't have to deal with this rubbish (The share scheme in question allows me to buy shares at 15% their market value and => the 15% is effectively extra income so I fill out a RTOS form when they are purchased, so the tax is already paid) again till October 2009. I got the new return form for 2008 recently which specified the filing deadline of Oct 2009 as expected but then this week I got an additional payslip demanding €700 and a deadline of 30 days to pay. This specifies that it is relating to shares recieved in year 2008 and => as far as I understand it should go in my return to be filed Oct 2009, moreover the format of the payslip is exaclty like the one for 2007 where I got my calculations wrong by €16, but how can they decide that I have got my calculations for 2008 wrong when I havn't even filed a return for 2008 yet? Does this make sense to anyone ??

Thanks,

Usjes.

 

[Gervan]

I know that for Unapproved Share Option Schemes the tax due is indeed payable within 30 days of exercise of the share option. The default position is that the tax is paid at the higher tax rate.
When you return your Form 11 or 12 for 2008 there may be some adjustment as it may not all be liable at the higher rate.
I would assume that the scheme operators have to inform Revenue that you have exercised the option; you haven't said that Revenue think your 2008 calculations are wrong. Basically you have to pay now, adjust later.

 

[allthedoyles]

As Gervan said above , tax on share option must be paid withing 30 days of exercising option , at the higher rate .

Ensure that you file your return before end Oct 09 , because there is a surcharge for submission of late returns , and its impossible to argue this surcharge ( and win )