Preliminary Tax query

J

JEMOL

Registered User
Messages
51
I have been registered for Income Tax for many years and submit an annual Form11. However for the last few years I have been on PAYE with no self employed income. I still return Form11 each year. I am now earning only self employed income in 2008. Can you tell me if I paid no self employed income tax in 2007, do I have to pay any Preliminary Tax to pay in Oct-08?
 

Your preliminary tax is based on 100% of the previous year or 90% of the current year. If you have no liability to income tax for 2007 then a nil PT declaration will suffice in October '08. However the full amount will be payable in October '09 and either 100% of your 2008 liability or 90% of your 2009 liability. Hope this helps
 
Thank you. I understand the rule but I just wasn't sure if the PAYE I paid in 2007 would be taken into account or not. I did not pay any Income Tax in 2007 as I had no self employed income.
 
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