Starting out as self employed

an_other

I am starting a new career for myself in which I will be self employed and selling my services to both business and home owners.

Can anyone recommend a good book to me that will help me answer all the stupid questions I have.

How do I register as self employed.
Do I need an accountant, or can I manage myself
Do I have to register for VAT etc?
If I don’t register for VAT will I be able to sell my services to businesses or just work cash in hand?
How to promote and market my business.

I can find lots of books on starting a business but they all seem to be American or British orientated. Anyone know of a good Irish guide for a novice like me?

maddogcollins

I cant recommend a book, but will attempt to put you in the right direction.

Can anyone recommend a good book to me that will help me answer all the stupid questions I have.

How do I register as self employed?

Yes you must register as self employed. This is done via a TR1 available from the below link.

http://www.revenue.ie/en/business/popular-forms.html

Do I need an accountant, or can I manage myself?

An accountant is there for advice and filing returns. With a sole trader/self assessment all forms can be filled by yourself. An accountant will give you help with these and may be able to offer advice on savings, what is allowable, not allowable for VAT and tax purposes. So in my opinion, yes an accountants is of use.

Do I have to register for VAT etc?

Registration for VAT depends on a number of levels. These can be found at the below link:
http://www.revenue.ie/en/tax/vat/registration/index.html

If I don’t register for VAT will I be able to sell my services to businesses or just work cash in hand?

Will depend on the ablove thresholds.

How to promote and market my business.

No help here, sorry!

This website may be of some use.
http://www.startingabusinessinireland.com/

Hope this helps in some way

an_other

Cheers that's a big help in the right direction.

On the VAT thing, does it make any diference to a business if I charge them VAT or not. Do they need to be charged VAT so they can claim it back?

Kine

http://www.startingabusinessinireland.com/ is a good website, I do believe he also has a book out on the sunject.

With VAT, I think some businesses may prefer you to be registered for VAT (however, I'm not 100% whether they require you to be, but I don't think so). Also, VAT can be useful if you are purchasing any thing from abroad, as as far as I know, you pay no VAT if you are registered. I'm open to correction here though.

maddogcollins

an_other wrote: »

Cheers that's a big help in the right direction.

On the VAT thing, does it make any diference to a business if I charge them VAT or not. Do they need to be charged VAT so they can claim it back?

To a business it does not matter if you are VAT registered or not. If you are not registered you would for example charge €1000 and if you were registered you would charge 1135 ((1000*13.5%)+1000) or 1215 ((1000*21.5%)+1000). The business could then claim the VAT portion back. Meaning they are still paying the same amount technically.

an_other

So what are the benifits of me registering for VAT if I am not sure that I would cross the €35000 limit?

Locomotion

Other companies would be more willing to trade with you if you are VAT registered because then they can claim back the VAT they pay on their purchases.

It would also help you because although you'd have to pay the VAT portion of the money you receive from a customer over to revenue, you can also claim back any VAT that you pay on purchases for your company.

It also gives off a more professional image of your company as if you are dealing with other companies or well established clients, they may feel your business is small time if it is not registered for VAT.

an_other

That makes sense alright. So do I need a VAT number to display on invoices in order to charge VAT?

maddogcollins

At a minimum a valid vat receipt must have

• your name/company name
• your address
• your VAT registered number
• Date
• Name of customer
• Address of customer

an_other

Thanks a million this is all a great help for a thicko like me.

If I register for VAT can I claim VAT back off things like Diesel, stationary & insurance. Or is it just on things like a van or tools.

Baby4

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maddogcollins

I agree with Baby4. A book keeper would be ideal for helping with VAT returns and any other Tax returns necessary.

They would be alot cheaper than an accountant and may only have to work a few hours every 2 months or so. Files could be posted to them and they work from home or meet up if you know them. A handier way than having an accountant.

You could claim VAT back on Diesel, tools, van, stationary but not insurance as no VAT chagred. But you would also have to pay over the VAT charged on your invoices to revenue.

an_other

Cheers guys this is great stuff.
Anyone think of a good book for me?

an_other

Am I mad even thinking of starting up in the current climate?

Baby4

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an_other

Mobile IT services to small business and home offices.
Repairs, upgrades, virus removal that sort of thing

Baby4

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an_other

Cheers Baby4 you have just backed up my own thoughts.
Every business no matter how big or small depends on at least one computer. So hopefully the work is there it's just a matter of finding it.

an_other

Would I be better off by tagerting home users in the begining and just charging cash in hand or should I register for VAT and hit the businesses first?

Any suggestions guys and girls?

Hammerarm

Your services would constitute "professional services" in the eyes of revenue. Therefore you will have to charge VAT @ 21%.

If you register for VAT and end up targeting the household market will still have to remit the 21% to revenue on sales.

In saying that if you will be buying parts for repair works, you will be able to claim the VAT back on these.

Hitting 35k in first year may good acheivement in current climate. You can register after year one if needs be.

Have you prepared a cashflow for your first year??

Baby4

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an_other

Your services would constitute "professional services" in the eyes of revenue. Therefore you will have to charge VAT @ 21%.

If I am servicing a piece of equipment is VAT not charged @13.5 % for labour and then I would charge 21% on any spare parts?

Baby4

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an_other

So what is the diference in "professional services" @ 21.5 VAT and "labour" @ 13.5% VAT.
If it is just my time (ie no spare parts etc) is that 13.5%?

Baby4

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Hammerarm

Professional services is very loosely defined. Sorry 21.5%, baby4.

I had an issue in getting a soletrader set up, similar in nature to an_other line of business. Individual was expecting to exceed threshold, and did, and VAT is chargeable at the higher rate band based on the fact that he was providing was specialised and therefore was catergorised alongside other profession services, eg accountancy services.

It will solely depend on the nature of the work you are doing, will a lot of it be IT consulting?

If a lot of the work will be repairs, you are looking at the 2/3 ruling in relation to charging VAT

an_other

This is getting confusing if I have to charge diferent VAT rats depending on the job.

I I do something like install a software package is that a professional service?

Baby4

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