Hi everyone, I am a normal PAYE worker. Last year I did a small amount of work for additional income for another company (with approval from my main employer). This was under the 5k limit, so I will pay that through myAccount on Revenue in the next couple of weeks.
This year I did quite a bit more work for the second company so the tax implications next year i.e. to be paid by October 2025 are more significant, roughly 20k I will have to pay. I know I need to register to be self-assessed and already spoke to a local accountant who is going to sort this out for me.
Unfortunately, I had some sudden unexpected costs that meant a large part of the money I set aside for revenue next year is gone. I won't be doing additional work next year outside my normal job. I will at least be able to set aside enough money to cover the tax owed (although it will be tight), but I'm wondering what implications there might be if I have a shortfall. Can revenue just take it from my tax credits over a few years? Are they amenable to this? Are there limits in place etc.? If I owe 20k but could only pay 10k as a lump could I ask them to take the other 10k over 4 years for example? Just to be crystal clear, I'm not asking for a way around paying the tax I owe, just wondering what issues I could face if I struggle to pay the full amount owed. Basically, having faced these unexpected costs, I'm wondering how sick with worry I need to be as I save all I can for the next 12 months
I see here (https://www.revenue.ie/en/jobs-and-pensions/end-of-year-process/underpayment-position.aspx) that it says "Where you have an underpayment of Income Tax or USC of less than €6,000, you will have the option to:
I'm wondering would that mean if I had 14k of the 20k, could I then request to pay the remaining 6k via tax credits
This year I did quite a bit more work for the second company so the tax implications next year i.e. to be paid by October 2025 are more significant, roughly 20k I will have to pay. I know I need to register to be self-assessed and already spoke to a local accountant who is going to sort this out for me.
Unfortunately, I had some sudden unexpected costs that meant a large part of the money I set aside for revenue next year is gone. I won't be doing additional work next year outside my normal job. I will at least be able to set aside enough money to cover the tax owed (although it will be tight), but I'm wondering what implications there might be if I have a shortfall. Can revenue just take it from my tax credits over a few years? Are they amenable to this? Are there limits in place etc.? If I owe 20k but could only pay 10k as a lump could I ask them to take the other 10k over 4 years for example? Just to be crystal clear, I'm not asking for a way around paying the tax I owe, just wondering what issues I could face if I struggle to pay the full amount owed. Basically, having faced these unexpected costs, I'm wondering how sick with worry I need to be as I save all I can for the next 12 months
I see here (https://www.revenue.ie/en/jobs-and-pensions/end-of-year-process/underpayment-position.aspx) that it says "Where you have an underpayment of Income Tax or USC of less than €6,000, you will have the option to:
- pay your liability partially or in full through the ‘Payment/Repayments’ card in myAccount
- or
- have the full or remaining liability collected, interest free, by reducing your future tax credits from 2024 over a maximum period of four years."
I'm wondering would that mean if I had 14k of the 20k, could I then request to pay the remaining 6k via tax credits
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