Income tax return (form 11) for Zero earnings

Hi,

I would be glad to get someones input on this.

I registered for income tax return approx 5 yrs ago when I looked at starting an IT business with two work colleagues. The company never got off the ground and we never made any money and is now defunct. I am and have always a PAYE worker and am still registered for income tax but have not completed a form 11 for 3/4 years.

Question 1). am i likely to face a fine for not completing my returns each year even though I earned nothing outside of my PAYE salary?

Question 2.) do I need to complete a form 11 for each year or is there an option to complete one form for all years?

Question 3.) Do I make my Med-1 claims through these forms?

Question 4.) can I request PAYE balancing statements for these years after completing the returns?

Question 5.) - do can I unregister for income tax?

Thanks in advance,
Mickaxe.

If you are on a salary, you should be registered for Income Tax. PAYE is just another way of collecting IT, so your question about deregistering is based on a mistaken interpretation (but wouldn't it be nice if we had the option of withdrawing from the system?).

Strictly speaking, everybody can be required to complete a Return of Income for every year, using either Form 11 or the shorter and simpler Form 12. The Revenue are less concerned about PAYE taxpayers making returns, because there is a system in place for ascertaining their income and collecting tax. If, however, you get a formal demand for returns, you had better comply.

I suggest that you contact your tax office (the unit with which your employer deals on your behalf) and ask that Form 12 be used in future. You can ask also for duplicate forms for the years you have not made returns and complete them. Claims for Medical Expenses are made on a separate form, MED-1 -- one for each year for which you have a claim to make.

A simpler approach might be to work through the Revenue Online Service. See http://www.ros.ie/PublisherServlet/home

mickaxe said:

... The company never got off the ground and we never made any money and is now defunct...

Click to expand...

Did you register a limited company. a partnership, a trading name or did you all register as self-employed?

Its actually not too difficult to sort out your situation with the Revenue Commisioners. It does depend on whether you registered as a company or a partnership so perhaps you wouldnt mind clarifiying this. But basically you may be able to backdate your deregistration or if not you will have to file the F11s but as you have no taxable income other than PAYE income you shouldnt be charged any penalties or interest but can also claim back your med exps etc at cethe same time. By filing the F11 this would be the simplest way to obtain your refund of tax due to med exps and once you are up to date you can then deregister for self assessment and claim med exps through the PAYE system in future.
By the way registering for self assessment is different from PAYE even though it they are both classed as Income tax!