Business

Louise77

Hi guys,

Set up a bit of business outside my usual job, making maybe 100 euro a week - very small fry. However now I have a order in for potentially 20,000 euro - I don't want to be caught for tax evasion so what would be the best way to do all these in the proper way - do I have to set up a company and pay VAT etc.... Any advice please!!
Louise

gbh

Louise77 wrote:

Hi guys,

Set up a bit of business outside my usual job, making maybe 100 euro a week - very small fry. However now I have a order in for potentially 20,000 euro - I don't want to be caught for tax evasion so what would be the best way to do all these in the proper way - do I have to set up a company and pay VAT etc.... Any advice please!!
Louise

I'm no expert on these matters and in fact I'm only at the stage of thinking of setting up a business.

However, I think your best and safest bet is to get the tax man on side as early as possible. This will probably involve applying to the CRO for a business number, costs very little.

With 20,000 euro, you probably still won't have to pay tax or VAT. You might get several more large orders which in fact might make your business profitable on its own. The last thing you want then is problems with the tax man, penalties, court cases and costs.

paulocon

Setup as a sole-trader - this will let you continue your normal employment as a seperate entity (assuming you are in a PAYE job).. Register your business name with the CRO and get yourself an accountant. Accountant will file your return at year-end (can't remember the name of the form, think it is T1 or TR1)..

Keep all receipts. keep a log of expenditure and incomes, invoice properly etc. I have a spreadsheet I use myself should you need a copy.

Culchie

35k per annum and you have to register for VAT afaik

ImDave

€37,500 for Service orientated business, €75,000 for the supply of goods. You are required to register if you meet or anticipate meeting these levels.

aidan.connolly

Hi,
You should also be aware that you will have to pay income tax & PRSI on the profits you are making from your business. If you are an Employee paying PAYE etc, the chances are you are using you tax credits/allowances on your day job, so you may have to account for a higher tax payment on you part time business, depending on you circumstances.
A a previous poster has reccomended, you should register yourself as a sole trader ( TR1 form on the Revenue.ie website) This form enables you to register for all taxes including vat if you need to.
If you want to use a Trading name you should register it with the CRO. You are not obliged to but it is important to do it.

Good luck

Aidan

thecleverone

If you want to use a Trading name you should register it with the CRO. You are not obliged to but it is important to do it.

Not true. Extract from CRO website:

"Registration of a business name is obligatory if any individual or partnership (whether composed of individuals or bodies corporate or any combination of both) or any body corporate carries on business under a name other than their own true names"

aidan.connolly

Sorry, I have been corrected. Yes "thecleverone" is indeed correct

Lorelei

You dont actually have to do anything other than inform the revenue on your end of year tax form that you have earned income on top of your paye job. If your earnings are over the higher tax rate threshold then the balance over that rate will be taxed at the higher rate.
I would suggest that you go first to the revenue on line site order some of their brochures which I find excellent, then talk to the tax man or lady. I do this all the time and have done in 4 different European countries and in every one found them extremely helpful, they tell you exactly what you want to know and are not contrary to what people think "out to get you".

Snowdrop

If you intend continuing this business I would recommend that you register as a sole trader.
Registering as a sole trader is very simple and you should be able to do everything yourself. There are basically only one or two steps:

1. Register a business name on www.cro.ie( not necessary if you are going to trade under your own name)
2. Download & fill in form TR1 from www.revenue.ie. This form also allows you to register for VAT and as an employer if applicable.

I would also advise that you register on www.ros.ie as a sole trader. Filing your returns online is the way to go.

You won't need to file any income tax return this year. Just keep good records of all your income & expenses in either a spreadsheet or on a computerised accounts package and it will make things a lot easier next year.

If you do register for VAT/Employer make sure you keep your returns up to date and you won't go far wrong.