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How would a summer camp be taxed

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  • 09-05-2009 11:02am
    #1
    piamhy
    Closed Accounts Posts: 17 ✭


    Hello,

    I'm think of running a summer camp in July if I can get the kids. We predict our profit will be about 1000 each. What way will this be taxed? Do I have to register as self employed?

    I have been unemployed this year, claiming jobseekers benefit and doing a bit of teaching work.

    Thanks
    Tagged:


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    #2
    swanvill
    Registered Users Posts: 276 ✭✭swanvill


    Hi,

    Your profits would be taxed as additional income and you would have to complete a form 11e (can be found on www.revenue.ie)

    To work out your profits you would deduct all your expenses that you incurred running the summer camp less all the fees you got from the kids.

    Seeing that you are unemployed and you anticipate a €1,000 profit I would be surprised if you had any income tax/PRSI/Income levy on this additional income. However you would have to do a full income tax calculation just to make sure.

    You might also want to consider informing Social Welfare if you are going to be running this venture for the summer and stop claiming while you are working on this.


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    #3
    jamesonandcoke
    Closed Accounts Posts: 18 ✭jamesonandcoke


    It might be worth while setting us as a company if your profits increase. There are a number of reasons:

    Dealing with kids is a high risk business and the limited liability that trading through a company provides would be a great peace of mind.

    Any new companies set up in 2009 are exemp from corporation tax for 3 years subject to a limit of €40,000. See Finance Act (No 2) 2008 for more details.

    You can decide how much will be taxable as you can decide how much to extract from the company in the form of salary/pension.

    There may be certain reliefs available for investment. Relief for loans to acquire interest in a company. BES or Seed Capital relief.

    Trading as a sole trader may have advers cash flow implications as you will have to pay income tax and preliminary tax by 31 October.

    If you're profits are only going to be €1,000 every year then the cost of setting and maintaining a company will erode your profit. It might be worth doing a bit of analysis to establish what is best for your situation. The limited liability advantage is a major factor.


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