Very small new business

mickdw

Hi,

I registered with revenue in march for income tax only (Not VAT regd). On their advice seeing as I had started trading since january, my effective start date is 1/1/2009.
Now this has small turn over so Im certainly under the taxable income but I understand I will have to pay basic rates of prsi & some of these new levies possibly.
What is the requirement for a tax return this year? Should I just be sending in preliminary tax for this year or did I rear somewhere that there is a different system for startup business
Also is it possible to do this without an accountant?
I know it sounds like I know nothing about the system but If I was pointed in the right direction, I could surely work it out.

censuspro

Mick

Assuming you are a sole trader and not a limited company and you started trading in 2009, you're first income tax return is not due until the 31/10/2010 along with your first preliminary tax payment so you still have some time.

Assuming you're self employed income is quite low, the basic prsi contribution is 3% (Min €253)

Health levy is 3.33% or exempt if your income is less than €26,000

Income levy is 1.67%

...and remember that you pay tax on your profits not turnover.

mickdw

So I have to do nothing for this years deadline? No preliminary for 2009?

Also, say for example by the end of december Ive invoiced 22,000 with 8,000 expenses. Thats 14,000 taxable.
€420 prsi payable,
Zero Health levy (being under €26000)
Zero income levy (being under €15,028)

14,000 taxable @ 20% = 2,800
less applicable tax credit = tax payable.

censuspro

No, this years deadline is for 2008 income tax.

Your calculations appear to be correct providing that is you only income. If you have other sources of income you will need to take those into account also.

mickdw

Thanks. thats the only income at the minute.