what to do about underpaid tax 2008

K

kermit291

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Hi everyone
I was hoping that someone might be able to advise me regarding paying tax for the year 2008. I did a small amount of part time work (estimate I earned less than 4000) where I was technically self employed. This was outside of my main employment. I'm anxious about getting into trouble with revenue for not telling them about the extra income. Also, I was wondering how they recover the tax due. Do you have to pay it all immediately or can they adjust your tax credits for this year? I will be stopping work in October 2009 to pursue a full time masters degree and want to sort this out as soon as possible so that I can get a valid P21 for my 3rd level grant application. They use your income from 2008 to assess your application. If I were to declare the extra income on my grant application and not have all the tax paid off would my application be declined? Sorry for all the questions, its just that I got my university offer last week and I definately can't afford to do the course if I don't get the grant.
 
I'm self employed, and I'm going to be paying my 2008 tax (and prelim for 2009) by Oct 31 2009, so I don't think you're actually late for your return.
You have to pay the tax due in one go, normally.

Why don't you give revenue a call, they're usually very helpful.

Hopefully a passing accountant might give you an opinion on this.

Nicola
 
As NicolaM siad above, your return is not late. Technically you should have registered as self-employed when that income began, but there is space on the Form 12 to include a small self-employed profit. I suggest you print Form 12 2008 from the revenue.ie website, and return with a covering letter as soon as possible, as it can take some weeks to get a P21. (I'm assuming your self-employed income was just for 2008.)
The self-employed income will increase your 2008 income on which the grant will depend.
 
Thanks NicolaM and Garvan for the advice. I am printing off that form and sending it off asap so that I have a valid P21 for July (when county council can accept applications). I have to actually check the amount I earned as self employed so I can be exact but I think I will at least qualify for 75% of non adjacent rate and a substantial reduction in fees.
Fingers crossed:)
 
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