Tax bill for self employed

[bamboozle]

My Gran has a carer who is foreign and has not paid tax on her income for the last two years. She's received a tax bill of €12,000 for these 2 years. using Karl Grabe Tax calculator i calculater her tax due to be 4,800 (income of 28,600 PA)

Could the reason for the 12k bill be fines and interest as she has not paid tax in 2 years?

I presume as she is not related to my gran she is classified as self employed.

 

[ClubMan]

Karl Jeacle's calculator www.taxcalc.eu is primarily aimed at PAYE workers so the results may not be applicable for self-employed. Your grandmother probably needs professional advice from an accountant or tax expert.

 

[bamboozle]

Thanks for response, it is correct tho in saying that self employed are obliged to pay income tax every tax year and will incur fines & interest if they fail to do so?

 

[ClubMan]

Self employed are self assessed so must file returns/payments as necessary each year. Failure to discharge any liabilities arising could well lead to interest/penalties.

 

[ACA]

I have been self employed since 2006 - you don't need to submit accounts until this year; at which point you pay for 2006 based upon income and preliminary tax on 2007 based upon 2006 income + 5%-10%.

€12k does seem very expensive for such a low income. Best advice would be to speak with a qualified accountant. 15th November is the closing date for revenue on line or 31st October otherwise.