Not sure about Form 11 for 2007 Tax Return

Hi

I recieved Form 11 in the post a while ago and diligently put it in a safe place only to forget about it. I have taken it out yesterday as i knew i had to send something back at the end of this month.

Both my wife and i setup a company in 2007 importing goods and retailing them. We are both full-time PAYE workers and the company we setup is a weekend hobby that we are slowly building but do not take a wage from.

Of the initial seed capital we put into the company to purchase stock we have only taken a small amount back for expenses and still have quite abit of stock left. So as such we have sold a small amount of goods at a profit but overall we did not make any money during 2007.

At the moment we have not filed any accounts with CRO as we were advised that we did not need to until the end of 2008. I have details of all sales and expenses and VAT returns that have been made but thats it.

I know that someone is going to say go to your accountant now but what i was hoping for was a breakdown of what i should be including in Form 11 considering i am a full time PAYE employee and this is my only income. We have not taken an income from the company.

Regards

David

Is your company a Ltd Company?
If it is you just need to complete the Form 11 including your PAYE income only as you have not drawn down a salary from the company. You also need to complete any other sections that are relevant to you i.e if you have a private pension, claim for tax credits etc., Don't forget to tick the box under PAYE credit otherwise this will not be included on your Notice of Assessment and you will automatically have an underpayment! Don't be put off by the size of the form, read through it carefully just to make sure you don't leave anything out.

When you set the company up in 2007 when did you indicate that accounts would be made up to i.e 12 months from date of registration or 31/12/2007. If it was 12 months from date of Reg you don't need to file CT 1 until 2008, if it was 31/12/07 you will need to do this now also.

If you registered as a sole trader or patnership when did you indicate that accounts would be made up to i.e 12 months from date of registration or 31/12/2007. Again if it was 12 months from date of Reg you don't need to include details on Form 11 but if it was 31/12/07 you will need to fill out details on Form 11 under Self assessment income - even if you have nil profit.

advisor said:

When you set the company up in 2007 when did you indicate that accounts would be made up to i.e 12 months from date of registration or 31/12/2007. If it was 12 months from date of Reg you don't need to file CT 1 until 2008, if it was 31/12/07 you will need to do this now also.

Click to expand...

The original accounts year end date specified in Form TR2 is not binding. Pick the date that suits you best, ideally after receiving professional advice. Notify the Revenue registration section of the changed date, if necessary.

If you have a limited company which you set up in 2007, then you need to be aware of your Annual Return Date (ARD) which relates to filing obligations with the Companies Registration Office (CRO)

Every limited company in Ireland must file a return with the CRO every year. The first return must be filed 6 months after the company has been set up while each subsequent return is made up to the anniversary of that first return.

Each return (apart from 1st one) must also contain a set of abridged accounts for the company. If any of these returns (apart from 1st one) are not filed on time, then your company will HAVE to have an audit for both this year and the following year which could be very punative in the long run.

EG

Company is registered 31st March 2007
1st ARD is 30-Sep-07 and you must file the return before 28-Oct-07
2nd ARD is 30-Sep-08 and must include abridged accounts, again to be filed before 28-Oct-08

NB - it is possible to extend your ARD by a max of 6 months but you can only do this every 5 years.

This probably seems like a lot of info but it IS very important to get this right from Day 1.

You should check the CRO website www.cro.ie to check what your ARD is or else post on this thread if you have any others queries.

Hi All

Many thanks for your replies.

We setup the company on the 14/06/2007 and from looking at the CRO website i think we should have filed an AR on the 14/12/2007. It says the next AR date is the 14/12/2008. The acccountant i spoke with at the time told us that we would not need to send in an AR until Dec 2008.

Ok so we have not submitted anything so far. We have just been recording sales, expenses and sending in our VAT returns. So does this mean that we have to do an Audit as we have not sent anything in to date?

Slightly off topic, where would i find a list of all required documentation that needs to be returned to the CRO with some sort of schedule attached so that I can plan out my year.

Getting back to Form 11

I was looking on the ROS website today and it appears that i may have more time than i thought to send this in. On the ROS website there is an extension available until the 17th November provided you pay and file through the ROS website.

Our company is registered on the ROS website but to complete Form 11 through the ROS website how should i register? As an employee PAYE and apply for digital cert?

I have read through the entire Form 11 in detail today and it is not as daunting as i first thought but it will force me to put everything in order.

Again many thanks for your time, heart rate is running a little slower today

There are three separate issues here in reality.

1. As a Limited company an annual return needs to be submitted to the Revenue Commissioners (Form CT1) - the filing date dependant on the accouting year end. if the company has made a small profit then corporation tax needs to be calculated and paid over as well.

2. As a limited company an annual return needs to be filed to the CRO (form B1) - the first filing date is 6 months from date of incorporation and then annualy thereafter. Failure to do this results in a daily fine being levied and the company losing its audit exemption status.

3. As a Paye worker you both will be classified as proprietory directors and as such are required to submitted an annaul return ( form 11) even if no salary is drawn down from the company.

Regards