What exactly is preliminary tax 90% based on - 2nd question

[Brendan Burgess]

I tagged my question onto someone else's who had only a very small non PAYE income.

But I want to clarify my understanding of Preliminary Tax and make the years I referred to in my post clearer.

I usually estimate my liability for the year and pay 100% of the tax. It's usually correct within a few hundred euro.

On my 2023 tax return, I have the following:


Computation of Final Liability
Income Tax:
USC :
PRSI:
Total amount of tax chargeable for this period: 20,000
Less Credits set against Income Tax : 3,000
Additional Credits ( PAYE , USC and DWT) :5,000
Total Credits: 8,000
Total liability
Payable: 12,000

In October 2023, I estimated my liability for 2023 after the Total Credits at €11,500 so when I file my return for 2023, I will pay the balance of €500.

But what about my Preliminary Tax for 2024?

I estimate it will look something like:

Total amount of tax chargeable for this period: 25,000
Less Credits set against Income Tax : 3,000
Additional Credits ( PAYE , USC and DWT) :5,000
Total Credits: 8,000
Total liability
Payable: 17,000

So I can pay 90% of €17,000 or €15,300
or 100% of my liability for 2023: €12,000