Where do I start - Self employed....TAX help.

J

JamesGG

Registered User
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Okay, was employed in 2006, have p21 for that year and previous years, was unemployed for most of 2007 and start of 2008.

Start of 2008 I became self employed (Taxi driver), my costs to get things up and running were close to €20,000, I have made no where near that so far and I am currently about minus €8400.

A few
months ago revenue sent me a form 11. On this form it asks me about tax I have to pay for 2007. I was employed at the start of 2007 but near the end I was unemployed and in receipt of jobseekers benifit​
/allowance.

So the form has me quite confused, I went up to the revenue office and asked for help but they were most ignorant and said the form must be completed in full before they will talk to me. I can't complete the form because I am unsure of the whole 2007 thing. What do I do?

And as for an accountant, I can't really afford to pay one as I am still minus 8400 this year.

Basically what I need done is the 2007 thing sorted, the form sorted, a Tax clearance certificate at the end, and a p21. Where do I go?

Any help much appreciated, also what is the situation of PRSI with self employed people? No one said it would be easy, no one said it would be this hard!! Thanks :)
 
When you left your employment you should have received a P45. Forward this to revenue along with details of the job seekers allowance.
I take it that you paid the correct tax while you were working. You may be due a small rebate.

As a self employed person you will need to do accounts for 2008. Many taxi unions provide a tax service or talk to other taxi drivers and ask who does their accounts.
The following may be of help:
[broken link removed]
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James,

It may be an idea to engage an accountant to provide advice, naturally agree a price up front. It you were to return an incorrect for Form 11 and you could end up paying a lot more in interest and penalties.

Ok who registered you for Income Tax purposes, they must have registered you from 2007 as opposed to 2008. However, it the notice just asks for a preliminary tax payment for 2008 just return it as nil as year of commencement rules will apply.

I'm assuming you're not registered for VAT purposes? If you aren't registered for VAT then you all you have to do to get your tax clearance is make sure your income tax affairs are up to date. Assuming you are only registered for Income Tax from 2007, then getting Tax Clearance will be a simple process.

Simply go to [broken link removed] and fill in the relevant details. It'll ask you why you are applying for clearance, click the voluntary option.

With regard to PRSI - You will pay PRSI at the same time as you pay Income Tax. It will be calculated when you fill out your Form 11.

In order to get Tax Clearance your Tax affairs must be up to date.

One thing I will say is, keep your tax affairs up to date. I've seen so many people who are very successful at what they do fail because they don't keep their Tax affairs up to date or return incorrect accounts. It's not worth it!
 
Iceman732 said:
James,

It may be an idea to engage an accountant to provide advice, naturally agree a price up front. It you were to return an incorrect for Form 11 and you could end up paying a lot more in interest and penalties.

One thing I will say is, keep your tax affairs up to date. I've seen so many people who are very successful at what they do fail because they don't keep their Tax affairs up to date or return incorrect accounts. It's not worth it!
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Agree 100% with this.
 
Actually, in your situation, the best thing to do is to employ an accountant. Preferably one which specialises in your area of business.

A good accountant will save you money by ensuring you claim all your entitlements, tax refunds, etc. If you've made a loss, it can be carried forward and set against next years profits.

Your accountant should also advise you on PRSI and how best to manage your finances. Your accountant is a legitimate business expense.
 
I would be very surprised if Revenue refused to assist you with your return. You must have made a decent attempt at completing Form 11, i.e complete your personal details, Paye income, DSFA payments, Revenue are then happy to indicate which sections are then relevant to your self assessment income. If you had nil self assessment income in 2007 then you complete this section as nil. Under description of income state "PSV Licence holder not in use 2007". For 2008 Form 11 go to an accountant but get a copy of return he makes for you, this can be used as a reference/guideline for making your own future returns.
 
In many or most cases somebody doing a Form 11 will need advice and not just information. Revenue only provide the latter and even then they can and do make mistakes. Acting on incomplete or erroneous information given out by Revenue will not be accepted by them as an excuse if the return is incorrect. Best to get professional advice if in doubt.
 
In many or most cases somebody doing a Form 11 will need advice and not just information. Revenue only provide the latter and even then they can and do make mistakes. Acting on incomplete or erroneous information given out by Revenue will not be accepted by them as an excuse if the return is incorrect. Best to get professional advice if in doubt.

If the guy has no self assessment income 2007 it would be pointless going to an accountant as return is very straight forward to complete as indicated in advisors post. I would suggest a Return visit to Revenue Office with best attempt at completing form 11 in hand.
 
ClubMan said:
If it's so simple how come nobody has answered the question here?
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upload a copy of form 11 and i'ld have it done in about five minutes!!!
No self assessment income makes things very straightforward. Trust me!!
 
advisor said:
upload a copy of form 11 and i'ld have it done in about five minutes!!!
No self assessment income makes things very straightforward. Trust me!!
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I'm in same situation as OP, applied for SPSV licence last year but never worked as self employed ( no second income for 2007), was working on PAYE in 2007, my wife was on paye till Oct and from Nov se was in receipt of JSB.
I received a form 11 and I'll try to fill it and I just want to make sure that I'm doing the right thing:

- 102 -PSV Licence holder not in use 2007 ? ( did not have a taxi licence last year)
- 212 - mine and my wife's gross paye income
- 219 - my wife's JSB for the end of the year
- 226 (a) - mine paye tax deducted on p60 and on my wife's p45
- 403(a) - i had about 50 euro interest in a deposit ( dirt deducted at the source)
- 515 - paye tax credit clicked
- 548 - total health expenses
Do i need to fill anything else on this form?

My second question is that I'm still working full time ( paye) and did not start to work as a taxi driver so have no second income for 2008 so far ( I'm intending to apply for the licence later this year) so what I have to do about the preliminary tax payment for 2008?
Thanks.
 
Don't forget to read through full details on tax credits you may have bin chareges or health expenses to claim for, if not all appears in order. If you get a prelim slip in the post complete as nil sign date and return
 
advisor said:
Don't forget to read through full details on tax credits you may have bin chareges or health expenses to claim for, if not all appears in order. If you get a prelim slip in the post complete as nil sign date and return
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Thanks Advisor. On the prelim slip should I complete all 3 sections with nil ( prelim tax 2008, balancing amount 2007 and CGT) or just the prelim tax 2008?
Also the form 11 and the prelim slip should be sent in together?
Thanks again.
 
Once the total is completed as nil, it's sufficent. You don't have to send Form 11 & Prelim slip together, as long as both are received before October 31st you should be o.k.
 
advisor said:
Once the total is completed as nil, it's sufficent. You don't have to send Form 11 & Prelim slip together, as long as both are received before October 31st you should be o.k.
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Thanks Advisor, one last question: last Sept I cashed in a PEP fund ( personal equity fund) from Arklife but the surrender value was less than the amount invested ( was no profit), do I have to mention this on form 11?
 
I think he needs to speak with a Registered Tax Advisor and not an accountant. Registered Tax Advisors are specialists in the area of tax law, accountants are not.
 
korpy said:
Is the first €13 per week of Jobseekers Benefit are exempt from
tax and should not be included,[219]?
Thank you.
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Contact dept of social welfare or your local revenue office and they can give you the taxable figure.
 
advisor said:
Contact dept of social welfare or your local revenue office and they can give you the taxable figure.
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My wife contacted the local social welfare office and they gave her a letter that " she was in receipt of JSB benefit from late Nov ( they gave her the exact date) and the rate was € 185.50/week, but never gave her the taxable figure, is this right or they should give us the total JSB taxable amount for 2007 or should I work out myself ( add all the JSB received last year and deduct €13/week).
Thank you.
 
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