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Preliminary tax for 2012 if earnings below €10,036

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  • 13-11-2012 12:59am
    #1
    mrcheez
    Registered Users Posts: 13,719 ✭✭✭✭


    Hi,

    I was a sole trader up until mid-2011 when I became a full PAYE worker.

    I still keep the business account going for odd jobs (web development), but in 2012 the total income for the sole trader will be well under the minimum threshold of €10,036 ... let's say for arguments sake it's €5,000.

    My PAYE earnings are above this, but tax has already been paid on these.

    I'm finishing up my Form11 for 2011 on ROS and unsure of how I'll calculate the preliminary tax for 2012.
    Do I need to pay USC on the 5,000 since my annual gross (including PAYE) are above 10,036?

    Thanks.
    Tagged:


Comments

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    #2
    kennyb3
    Registered Users Posts: 6,724 ✭✭✭kennyb3


    In a nutshell yes, you have total gross income above the limit.


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    #3
    mrcheez
    Registered Users Posts: 13,719 ✭✭✭✭mrcheez


    Thanks. There is also a possibility that there is no profit this year after expenses deducted.

    In this case how would I calculate the preliminary for 2012?


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    #4
    kennyb3
    Registered Users Posts: 6,724 ✭✭✭kennyb3


    mrcheez wrote: »
    Thanks. There is also a possibility that there is no profit this year after expenses deducted.

    In this case how would I calculate the preliminary for 2012?

    Look at the rules, its 100% of 2011 or 90% of expected liability. Obviously the first is more certain. If you go down the 90% route, pay bit more rather than less. (or be sure you definitely won't have a liability if that's what your saying).

    If you aren't making a profit though - why are you doing it? Be sure your not over claiming expenses for a small level of income.


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