Revenue Interest is 8%Since it's interest free I would be inclined not to make a full repayment even if you were able to. If you leave €6,000 outstanding then having it collected through tax credits would be preferable. Your net pay would reduce by 6000/48 = €125 p.m. for 4 years which could be more manageable for you.
"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
As the debt will relate to income tax and you will be filing a form 11 tax return as a chargeable person, the link you have provided will not apply to you as that is applicable to individuals who file PAYE tax returns via their revenue myaccount. The below link is what you are looking for to deal with your income tax debt.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:
- 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
That's very helpful, thank you. I do think I'll be able to pay it all, but knowing that there are options such as this at least removes the worry.As the debt will relate to income tax and you will be filing a form 11 tax return as a chargeable person, the link you have provided will not apply to you as that is applicable to individuals who file PAYE tax returns via their revenue myaccount. The below link is what you are looking for to deal with your income tax debt.
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