preliminary tax

[z106]

I am an IT contractor and just got a letter stating that i have to pay my preliminary tax for 2007 and stating how much i have to pay.

WHat is this ?

Is this the accountants estimate after going through my accounts of how much tax i owe for the year 2007 ?

As in - is it fair to assume that the tax i owe in theory should be in or around this figure?

 

[Nige]

Who did you get the letter from?

 

[ubiquitous]

Is this the accountants estimate after going through my accounts of how much tax i owe for the year 2007

How can someone here answer this? Why not ask your accountant?

 

[asdfg]

Could it be based on the following

Preliminary Tax is your estimate of your Income Tax payable for the year and must be paid by 31 October. In calculating your Preliminary Tax you should remember that it includes PRSI and Health Contribution as well as Income Tax.
The amount of Preliminary Tax you must pay to avoid interest charges is the lower of:​

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90% of your final liability for the current tax year
or​

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100% of your final liability to tax for the immediately previous year
or​

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105% of your final liability for the year preceding the immediately
previous year. This option is only available where you authorise the
Collector-General to collect tax by direct debit. The 105% rule does
not apply where the tax payable for the pre-preceding year is NIL.

See [broken link removed] for a more detailed explanation of self assessment ​

 

[TripleA]

asdfg replying to qwertyuiop?

where is hjkl and zxcvbnm?

 

[Graham_07]

asdfg replying to qwertyuiop?

where is hjkl and zxcvbnm?

They're gone on hols with <>? and !"£$%^&*(), I hear they're having a great time.

 

[ButtermilkJa]

I am an IT contractor and just got a letter stating that i have to pay my preliminary tax for 2007 and stating how much i have to pay.

WHat is this ?

Is this the accountants estimate after going through my accounts of how much tax i owe for the year 2007 ?

If the letter came from your accountant then I'd say that you're right, it's their estimate of what they think you owe, and they are looking for you to pay it before the deadline (Oct 31st for post - Nov 15th for online returns).

As in - is it fair to assume that the tax i owe in theory should be in or around this figure?

I'm not sure what you mean here? Isn't that the whole idea of Prelim Tax... i.e. a best estimate/assumption of what you will owe?

 

[ClubMan]

asdfg replying to qwertyuiop?

where is hjkl and zxcvbnm?

All we need now is for Dvorak to join us!