Form 11E

Dixon

Hi all,

Sorry, I know everyone is probably asking these sort of questions, but I'm struggling to find the exact answer I'm looking for.

I set up a sole trader business last year (July), I am now looking to file my tax returns for last year (July-Dec 2008). I have the form (11E), but there is a lot of parts that I don't think apply to me, I'm trying to find out what exactly I should be filling out.

The business I set up was just to be paid by cheque for services, so there was no employees to pay, no purchases, rent or anything, it was just me being paid by cheque, whatever I earned was my salary. I paid the cheques into my business account and transfered it straight to my current account as a salary.

During that time I only earned ~€10,000. What should I expect to be taxed for something so low? This was my only income for that time.

Any help/advice would be appreciated. Thanks in advance.

TaxingTimes

It is unlikely that you did not incur any tax deductible expenses, give more detail of your business, and then can advise.

Dixon

My business was a IT consultantcy. So all the jobs I did were selling my services, i.e running cables, configuring computers, fixing computers, consultant fees etc.

There was some travelling expenses, some board expenses, I also had to buy some tools and such, but not much. Is that the information you required?

TaxingTimes

What do you mean by board expenses?

Please note that if you have other income from 1 January 2008 up to the date of self-employment you need to declare this also.

You may be surprised at the expenses you can claim against self-employment - travel costs, telephone costs, cost of tools, stationery if you used paper to invoice, use of home computers etc.

It may be worth getting advice on this to minimise your tax liability (accountancy fees will be tax deductible also).

Also you need to self-assess, so you need to calculate your tax liablity yourself, and don't forget PRSI and health levies.

Dixon

Thanks for your quick responses TaxingTimes, appreciate it.

Board expenses would be money I paid to my parents, and the odd hotel, wouldn't have reciepts for that though so not sure if I could claim it.

I was in college that year until October so didn't have any other income for that year.

Maybe I should just get advice like you said, I am normally good at being able to understand things, but this tax thing has me licked. I think there's a fear factor involved.

Haven't even looked into PRSI or Health Levies yet!

deepriver

Dixon wrote: »

Thanks for your quick responses TaxingTimes, appreciate it.

Board expenses would be money I paid to my parents, and the odd hotel, wouldn't have reciepts for that though so not sure if I could claim it.

I was in college that year until October so didn't have any other income for that year.

Maybe I should just get advice like you said, I am normally good at being able to understand things, but this tax thing has me licked. I think there's a fear factor involved.

Haven't even looked into PRSI or Health Levies yet!

You need receipts for everything!! except mileage, but you calculate that at the civil service rates (check out citizensinformation.ie). I would be wary of claiming 'board' at your parents....