Help for a newbie! Nov 17th Tax deadline

[suileglasa]

Hello All. Would really appreciate some help! I am a full-time paye worker who started up a small business in May of this year. So far not made very much, average €400 a month and expenses come out of that! I registered business name etc in May and with regard to revenue, I filled out aTR1 form (I think that's what it was) earlier in the year. I have been keeping a basic spreadsheet of my incomings and outgoings but unfortunately, did not do enough research to realise I should be submitting something to revenue by Oct 31st!!! I now hear that I have until Nov 17th for late returns. Can someone advise me how to go about it and if it is something I definitely have to do. I thought that being a paye worker and having filled out the TR form, that revenue would know by my PPS number that I also earn extra income from a small business. Please Help! I am worrying myself sick!
Suileglasa

 

[ClubMan]

You have additional time to file certain returns using ROS. You should really consider talking to an accountant about your business tax issues in my opinion.

 

[suileglasa]

Hi Club Man

Thanks for your reply. I know I have a job and some extra income but monies are really tied up at the moment. To keep start-up costs low, I built my own website, did loads of advertising myself etc etc. I had been told before that as a small start-up business and a sole trader I should just keep a basic accounts spreadsheet and that there was no need for an accountant. Unfortunately, I rested on my laurels for a bit, putting it off until later in the year (which crept up on me very quickly and now I am really worried. I will do a bit of research on what an accountant might charge me!

Thanks again. Hey, just joined the forum today and it looks really cool.

all the best

 

[suileglasa]

What about asking the revenue what I should be doing? Or would that be a big no no! Since I have until Nov 17th, maybe they would oblige?

 

[trap4]

Have you already applied for a digital cert with ROS? If not you'd want to do that quickly as it can take a few weeks to process.

 

[suileglasa]

Have you already applied for a digital cert with ROS? If not you'd want to do that quickly as it can take a few weeks to process.

God, no. Don't even know what that is! Help!

 

[ClubMan]

Have you read the information on ROS about how to register and get started? As I say, even if cash seems tight engaging an accountant may well be worth it as you could end up even more out of pocket if you don't do your returns properly and on time.

 

[suileglasa]

Will check out the site again! My mind boggles when it comes to stuff like this.Someone who knows an accountant checked it for me and they said that if I am only in business since May of 2005, this year, then my tax return is not due until Nov 17th 2006!!!! I think I will get an accountant though as I expect the business to go from strength to strength if the amount of enquiries I have been getting recently are anything to go by. It was a slow start but it's on the up.

Thanks again

 

[stuart]

There is no need to panic yet!!!

Since you started in this year then you are not required to file a return for the year ended 31 Dec 05 until 31 Oct 2006

You are not obliged to pay over any tax until 31 Oct 06 either (round about explanation but that is when it is due)

So on 31 Oct 06 you will have to pay the full tax bill for this year (y/e 05)

Also you will have to pay the preliminary tax for 2006 on 31 Oct 06

(This will be the lower of the same amount again or 90% of what the 2006 bill should be)

Basically, as self employed you pay 90% of your tax bill (or 100% of previous years bill) on 31 Oct in the year and any balance due from the previous year

But on the first year the preliminary tax is postponed until the following 31 Oct but then two lots are due

stuart@buyingtolet.ie

 

[ClubMan]

Someone who knows an accountant checked it for me and they said that if I am only in business since May of 2005, this year, then my tax return is not due until Nov 17th 2006!!!!

Whether or not this is actually the case, depending on such sources for comprehensive and authoritative business taxation advice is not a good idea.

 

[suileglasa]

Whether or not this is actually the case, depending on such sources for comprehensive and authoritative business taxation advice is not a good idea.

I do understand this. It was just that I was trying to keep the initial cost low. I had been chatting to a few people with their own small business who said they just kept basic accounts and didn't use an accountant but when I needed to find out what to do, they weren't available!

 

[suileglasa]

I do understand this. It was just that I was trying to keep the initial cost low. I had been chatting to a few people with their own small business who said they just kept basic accounts and didn't use an accountant but when I needed to find out what to do, they weren't available!

I will be looking into getting an accountant in the new year! Thanks again.

 

[suileglasa]

There is no need to panic yet!!!

Since you started in this year then you are not required to file a return for the year ended 31 Dec 05 until 31 Oct 2006
You are not obliged to pay over any tax until 31 Oct 06 either (round about explanation but that is when it is due)

So on 31 Oct 06 you will have to pay the full tax bill for this year (y/e 05)

Also you will have to pay the preliminary tax for 2006 on 31 Oct 06

(This will be the lower of the same amount again or 90% of what the 2006 bill should be)

Basically, as self employed you pay 90% of your tax bill (or 100% of previous years bill) on 31 Oct in the year and any balance due from the previous year

But on the first year the preliminary tax is postponed until the following 31 Oct but then two lots are due

stuart@buyingtolet.ie

Stuart, thanks a mill. I think it's all clear to me now and i will look into getting an accountant anyway. I have only amassed a small amount since I started but I am expecting to make a lot more.

thanks