New budget & sole trader

J

JEMOL

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When the government increase taxes next month, how do you handle tax returns on the Form 11 at year end. How will the Revenue be able to check what tax you should pay as there is nowhere on the current form to say when the money was earned during the year. Do I assume they will adjust the form accordingly?

Thanks
jemol
 
dont think the increase in taxes rates etc will be brought in untill jan as it would be very messy with returns and paper work. I think in the mini budget we will be hit with other levys. But I could be wrong.
 
Is the government prevented from increasing taxes retrospectively? Maybe they'll increase the taxes from the start of the year!
 

Whatever changes will be made, Revenue will issue guidance once they have got their head around the mechanics of it. They usually do this on their website www.revenue.ie in either Tax Briefing or ebriefs.
 
Of course on the "pensions" levy they just ran with it without working the technicalities out with the result that some public servants who have no pension scheme still have to pay it. so anything could happen. I'm betting on increases in the 1% levy, applicable to earnings after 7 April. then it depends on whether you are on a cash or accrual basis. I'm a sole trader on a cash basis. I think you have to get permission to pay tax on a cash basis.
 
I'm not sure that it's constitutional to change an employment contract unilaterally but they've done that on the PS levy!!

Don't think they would try to backdate Taxes. they could split the year into 2 though. Bit of a nightmare for payroll depts but most are automated. Drastic times require drastic measures.
 
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