Preliminary tax for 2007

greentree

Registered User
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100
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
 
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 )
 
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!
 
 
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.