Interest on preliminary tax paid to Revenue

[Trudee]

Have to pay preliminary tax this year almost greater than income for this year, do Revenue give interest on this?

 

[asdfg]

do Revenue give interest on this?

No

You have a choice, you estimate your tax liability for 2007 and pay 90% or you pay the same amount of tax as you did for 2006 (100% rule). If the final liability is higher than the estimate you will have to pay interest from the date the liability is due.

 

[davidoco]

Have to pay preliminary tax this year almost greater than income for this year, do Revenue give interest on this?

Is the notice you got not just an estimate. You can and should estimate your actual liabilty (90% of it anyway) and send in that much or make a NIL return.

 

[Graham_07]

Is the notice you got not just an estimate. You can and should estimate your actual liabilty (90% of it anyway) and send in that much or make a NIL return.

Revenue do not estimate liabilities. It is up to the taxpayer to input their estimate. As stated, you have 2 choices, the 100% of 90% rules. If one estimates an amount less than 100% of the previous year and if that also ends up less than 90% of the current year then Revenue may levy interest on the amount underpaid.

If one expects at least some liability for the current year it would be very foolish to input a nil amount. This is leaving the taxpayer open to interest on the entire ultimate amount due for the year.

 

[davidoco]

Have to pay preliminary tax this year almost greater than income for this year, do Revenue give interest on this?

OP states that "preliminary tax this year almost greater than income" for year so unlikely to be any tax liability therefore NIL return.

OP should state how they arrived at idea that they have to "pay preliminary tax this year almost greater than income for this year".

 

[Graham_07]

OP states that "preliminary tax this year almost greater than income" for year so unlikely to be any tax liability therefore NIL return.

I would not make this assumption. Depending on figures involved ones PT based on 100% of p/y liability could in certain cases exceed c/y income and yet c/y income could well be a taxable amount.

OP should state how they arrived at idea that they have to "pay preliminary tax this year almost greater than income for this year"

That would be helpful alright. More detail given, the less assumptions have to be made.

 

[Ham Slicer]

Have to pay preliminary tax this year almost greater than income for this year, do Revenue give interest on this?

If the question is do Rev pay interest on income tax overpaid - the answer is yes - in limited circumstances.

 

[Trudee]

Should clarify, my income last year was quite good due to two good jobs (I'm self employed) however this year my income is half of what it was last year so that when preliminary tax came out for this year it almost equals what I made this year. I luckily had allowed for the preliminary tax to a point but it kills me to think I am handing over money to revenue that could sit in their account.

 

[ubiquitous]

Should clarify, my income last year was quite good due to two good jobs (I'm self employed) however this year my income is half of what it was last year so that when preliminary tax came out for this year it almost equals what I made this year.

Did you read this post? If not read it again. There should be no need to overpay preliminary tax if you know roughly what your 2007 earnings & eventual liability are going to be - regardless of whether your eventual liability in 2006 was high.

You have a choice, you estimate your tax liability for 2007 and pay 90% or you pay the same amount of tax as you did for 2006 (100% rule). If the final liability is higher than the estimate you will have to pay interest from the date the liability is due.