What will i be taxed and VAT on? New Business Startup!

smiley1986

Hi There,

Im looking to price my service as im trying to start a new business since i jacked in my job because i was unhappy.

anyways i was wondering.

If i set up an events managements company what will i have to pay on my service, il give you an example

Corporate Event - 10 people
Accommodation @ 50 per person = 500
Activity @ 30 per person = 300
I charge 10 per head for me organising the event = 100 euro

Altogether I take in 900 euro but I must pay 800 euro for the accommodation and the activity, what am i left with if im self employed?

Thanks

TaxingTimes

You need to look at a whole year to determine your tax bands etc.
You should prepare a cashflow forecast, and then calculate the tax.

You will need to take into consideration the employment income you had so far, and the tax paid to date.

You need to look at a forecast to consider the VAT registration limits also

smiley1986

TaxingTimes wrote: »

You need to look at a whole year to determine your tax bands etc.
You should prepare a cashflow forecast, and then calculate the tax.

You will need to take into consideration the employment income you had so far, and the tax paid to date.

You need to look at a forecast to consider the VAT registration limits also

Thanks very much, what about VAT, could i claim that from the activity and accommodation?

PCPhoto

smiley1986 wrote: »

Hi There,

Im looking to price my service as im trying to start a new business since i jacked in my job because i was unhappy.

anyways i was wondering.

If i set up an events managements company what will i have to pay on my service, il give you an example

Corporate Event - 10 people
Accommodation @ 50 per person = 500
Activity @ 30 per person = 300
I charge 10 per head for me organising the event = 100 euro

Altogether I take in 900 euro but I must pay 800 euro for the accommodation and the activity, what am i left with if im self employed?

Thanks

VAT Rate for Service is 13.5%
Vat Rate for product is 21%

you will also be charged income tax etc ....so you might want to look at charging per head ? ...also factor in insurance (incase someone picks up an injury while on your course you face being sued)

smiley1986

PCPhoto wrote: »

VAT Rate for Service is 13.5%
Vat Rate for product is 21%

you will also be charged income tax etc ....so you might want to look at charging per head ? ...also factor in insurance (incase someone picks up an injury while on your course you face being sued)

hey thanks for your reply,

whats income tax? would i be charged much.
The VAT is not really an issue as i will take it from the supplier to pay the government, correct?

dearg lady

ok, it seems there's two questions you're asking,

VAT first, if you're engaged in a vatable activity and you'r annual turnover is over the limits you muct register for VAT. If your turnover doesn't go over the limit, you can choose whether or not to register. You can get the limits on the revenue website.

IF you are registered for VAT, you will have to charge VAT on your invoices where applicable, this should be paid over to revenue. You can also claim back VAT paid on business expenses. Essentially you fill in a form every two months, saying this is the VAT I charged, this is what I paid, and then the balance of the two.

Income tax is seperate and is paid on your tax adjusted business profits.

Do you have an accountant?? You might need someone to go through soem of this with you

AugustusMinimus

smiley1986 wrote: »

hey thanks for your reply,

whats income tax? would i be charged much.
The VAT is not really an issue as i will take it from the supplier to pay the government, correct?

If you are setting up a company, you won't get taxed for income tax on the company earnings. Primarily you will get taxed on your cash drawings from the company. The remaining profit made by the company (after deducting your salary) will get taxed at 12.5%. Essentially, you'll get to decide what your salary is and hence, what income tax you'll pay.

However, any cash you take out of your company in excess of your net salary will be viewed as a loan from the company and there are fairly complicated company law and income withholding tax implications if you do this.

As you're going to be providing a service, you'll have to register for VAT if your sales turnover is over €37,500 per year or if you think it will go above that amount in your first year. If you will be providing your service to VAT registers persons you should consider registering for VAT even if your turnover will be below €37,500 as your customer can claim this VAT back and in addition, you'll be able to claim VAT back on your purchases.

In addition to this, talk to an accountant about the Seed Capital scheme. Money you personally put into your new company may be deductible against Income Tax you paid in your previous employment going back 6 years. Might get cash into your hands if you need to invest some cash into your new company.