Income Tax Bill

Q. I am unsure as to what amount to budget for my Income Tax bill which is due in October. Are there any tips as to how to calculate what might be owed?

22nd June 2018

A. The only way to be sure as to what the final bill is going to be is to get your accountant to finalise your accounts and calculate the associated tax liability due.

The sooner you get this done the more time you have to set aside the necessary funds and ensure that you do not end up with a cash flow issue in October/November which can be a serious issue for small businesses in particular.

One thing that businesses often forget also is that not only must you pay the balance of income tax owed for 2017, you must also pay preliminary tax for the 2018 tax year by the October deadline which increases the strain on cash flow.

Businesses who are unable to pay the amounts due in October may find that Revenue will impose interest charges on any underpayment but also, they increase their chances of being selected for the dreaded Revenue Audit.

Disclaimer: Advice shared in this blog is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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Call us today to make an appointment at your local office

1890 98 76 09

Or submit an enquiry