I am a PAYE employee, and my wife started a business in 2015 for which we submitted a Form 11 tax return in February 2016. We also own a rental property. Yesterday I paid the small outstanding tax bill that was due - c. 350 euros.
The thing is I am looking at our obligations and it looks like as a sole trader, she should be paying preliminary tax by the end of October 2016 for October 2016. But I have no idea how to calculate it. Some of the guidance suggests that we should pay the same tax as last year, but in 2015 while we paid 350 euros, if it hadn't been for health expenses and other deductibles, the tax bill would have been higher.
Just as a guideline, in 2015 she took in gross receipts of 12,385, less expenses of 3,226, leaving a net profit of 9,159, adjusted up to 9,473 to take into account 50% personal mobile phone usage.
So, if it weren't for other deductibles, I think her portion of the tax liability would have been around 20% of that. Is that what I should use for the preliminary tax return in 2016?
Any help appreciated.
The thing is I am looking at our obligations and it looks like as a sole trader, she should be paying preliminary tax by the end of October 2016 for October 2016. But I have no idea how to calculate it. Some of the guidance suggests that we should pay the same tax as last year, but in 2015 while we paid 350 euros, if it hadn't been for health expenses and other deductibles, the tax bill would have been higher.
Just as a guideline, in 2015 she took in gross receipts of 12,385, less expenses of 3,226, leaving a net profit of 9,159, adjusted up to 9,473 to take into account 50% personal mobile phone usage.
So, if it weren't for other deductibles, I think her portion of the tax liability would have been around 20% of that. Is that what I should use for the preliminary tax return in 2016?
Any help appreciated.