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do we need to register with revenue Tax clearance?

  • 11-08-2009 2:57pm
    #1
    freddie
    Registered Users, Registered Users 2 Posts: 131 ✭✭


    Hi Guys

    Myself and my partner are PAYE workers in full time employment but on the side we have a non profit making partnership. We are waiting on a grant cheque from the enterprise board but they are telling me I need to supply a partnership clearance certificate and not a personal one. We are not registered for tax as we do not make money yet, in fact we operate at a loss. Can any of you guys tell me if we are obliged to register for tax?

    I have started filling out the TR1 form but noticed the sentence

    It should not be used by:

    – A body whose sole aim is to receive a registration number to obtain a grant/tax clearance certificate - use a form
    Exempt Registration available on the website,

    I have looked on the revenue site but cannot find any such form....Any advice very welcome!

    Many thanks
    Freddie


Comments

  • #2
    Dan Chipowski
    Closed Accounts Posts: 1,072 ✭✭✭Dan Chipowski


    You'll have to register the partnership in order to get a tax clearance cert. (i.e. fill out the tr1). The fact it is loss making is pretty much irrelevant, it's a genuine partnership and should be registered for tax purposes as such.

    That other form mentioned is for charitable bodies etc (non-profit making), who just need a tax number in order to get a grant etc.

    (As an aside each partner's share of the losses from the partnership can be offset against their paye income for the relevant year)


  • #3
    dbran
    Registered Users, Registered Users 2 Posts: 2,094 ✭✭✭dbran


    Dan Chipowski is right.

    If you are in a business partnership then you are obliged to register the partnership for taxes.

    You will need to file the Form 1 partnership and also the individual members of the partnership are required to file individual tax returns. Failure to file income tax returns may leave the partners liable to late filing penalties. This could be up to 10% on the gross tax before deduction of the relevant PAYE. The ability to set of the losses against Sch E income would be a separate issue to this

    Therefore when the partnership started to trade will be an important issue as this is the point when self assessment rules would apply.


    Kind Regards


    Dbran


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