Preliminary tax for 2007

[greentree]

I just got a letter from the revenue about paying preliminary tax for 2007 before 21st November. Anyone else get one of these?

It says I need to pay 90% of my corporation tax for this year.

How do I know how much I have to pay when the year isn't even over yet?!

Mike

 

[Graham_07]

Re: Prelimary tax for 2007

1) PT Corporation Tax is payable by 21st of the penultimate month of the company financial year.

2) The basis is generally either 100% of the previous year or 90% of the current year.

I suggest you talk with the company's accountant/auditor ASAP so that an appropriate amount may be returned. ( they will have also received a copy, I got 4 today for company clients with December y/ends )

 

[usrbin]

Two questions:
Is this payable in the first year of the company's existence? (I'm guessing yes...)
If a direct debit to Revenue has already been set up, this would normally already be covered, is that correct? If so, how to handle this - a nil return maybe?

Thank you!

 

[Graham_07]

Is this payable in the first year of the company's existence? (I'm guessing yes...)

From [broken link removed]

*New or Start-up companies
New or Start-up companies with a Corporation Tax liability of €150,000 or less for their first accounting period will not be required to pay Preliminary Tax in respect of that first accounting period and will instead be required to pay their final Corporation Tax liability for that accounting period at the same time as they are required to submit their Corporation Tax return, i.e. within nine months after the end of the accounting period, subject to the 21 day rule referred to above.

This measure has effect as respects accounting periods in respect of which Preliminary Tax is payable after 6 December 2006.

If a direct debit to Revenue has already been set up, this would normally already be covered, is that correct? If so, how to handle this - a nil return maybe?

You need to check if you are actually paying Corporation Tax this way. ( or is it VAT or employers PAYE/PRSI )

 

[usrbin]

Re: Prelimary tax for 2007

Thanks a million Graham_07 for the informative (and fast!) reply and the very good point raised in the second answer. Will check it out.