Preliminary Tax

Q: What is preliminary tax?

3rd October 2014

A: Preliminary tax is an advance payment of tax that you need to make when filing your income tax return. Essentially you make a payment on account with Revenue for the following year. For example when filing your 2013 income tax return you pay the balance of 2013 tax and also make a payment on account for 2014.

This payment on account can be calculated in 3 ways:

  1. Based upon 100% of your 2013 tax charge.
  2. Based upon 90% of your estimated 2014 tax charge.
  3. 105% of your final tax charge for the pre-preceding tax year (2012). This option is only available where preliminary tax is paid by direct debit.

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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1890 98 76 09

Or submit an enquiry