Social Welfare & Income Tax

captainstacy

Hi

I was made unemployed in December 08. With jobs in short supply I decide to be pro-active and register myself as self employed and try to see if I could build up some work for myself.
I registered as self employed in Jan 09
I blew all my savings on advertising and buying myself a few tools I needed but I picked up little to no work.
In April 09 after 3 months of little to no income I went to the social welfare to find out where I stood. They were very kind and helpful and told me that I could remain self employed and claim for any days where I had no work.
As it turns out practically every day since has had no work so I have been claiming my Job Seekers benefit while registered as self employed.

Now it comes to me filling in my Tax return for the year 09, my question is do I include all the social welfare I have claim as taxable income?
I'm presuming it is yes but I am now worried that I will get a tax bill that I can't pay.

Any help?

Bookkeeper09

yes you include the social welfare income as receipts, but you can also claim the PAYE tax credit against the solcial welfare, which along with your own personal tax credits should wipe out most of the liability.
There will still be a minimum PRSI contribution

captainstacy

Cheers Bookkeeper09.
Will the minimum PRSI contribution scare me half to death?
I should de-register totally but then will be without any money at all while I reapply for Job seekers Allowance.

Bookkeeper09

PRSI minimum is €253

captainstacy

That €252 more than I got

Mr. Incognito

Do you know any friendly accountants?

The cost of the tools can be offset against any income which from the looks of it, there is none.

There may be no minimum PRSI as you are under the income thresholds for PRSI Contributions to apply me guesses which is 3,174

http://www.welfare.ie/EN/OperationalGuidelines/Pages/prsi_selfemp.aspx#6

applies

captainstacy

Hi guys

If I were to de-register as self employed could I back date my de-registration to when i last had work? or even to the end of 09 so I won't have a tax return for 2010