Tax implications for small part time business?

chris85

Hey myself and the other half are both in full time employment but we are thinking of setting up a market stall selling something. basically a catering venture but will only be at the weekends (for the moment anyways).

Its really the gf's thing and i presume the best way to do it would be for here to at as sole trader for this, i would just help out when needed. A few questions i have though.

Do we have to pay VAT on items sold?
What are tax implications (on PAYE earnings as well as earnings for this venture)
Can we claim VAT back on expenses/equipment?
Do i register the company with CRO?

Any help would be appreiated? I have no clue about this stuff so sorry if its something i should know.

Cheers,

Chris

DoMyBooks

If your turnover is under €75,000 PA you don't have to register for VAT.

If you don't register for VAT you don't have to charge VAT and you don't get to claim it back on expenses.

During the financial year you keep proper books of account. (Records of all transactions) and at the end of year a taxable profit (loss) is calculated on which you pay tax / claim a refund.

www.revenue.ie/en/tax/it/leaflets/it48.pdf

Explains a lot.

You don't have to register a company with CRO but you should register a business name if you are using one other than your own name.

If you don't want to research it yourself properly you could hire an accountant. As its a small part time business the cost should be minimal.

chris85

DoMyBooks wrote: »

If your turnover is under €75,000 PA you don't have to register for VAT.

If you don't register for VAT you don't have to charge VAT and you don't get to claim it back on expenses.

During the financial year you keep proper books of account. (Records of all transactions) and at the end of year a taxable profit (loss) is calculated on which you pay tax / claim a refund.

www.revenue.ie/en/tax/it/leaflets/it48.pdf

Explains a lot.

You don't have to register a company with CRO but you should register a business name if you are using one other than your own name.

If you don't want to research it yourself properly you could hire an accountant. As its a small part time business the cost should be minimal.

They that revenue info is great. will have a decent read of it. It should cover most of the questions i think.

What about earnings from the full time job. what implications are there?

shoutman

Earnings from your full time job will still be taxed as normal.

chris85

good to know. That will be the steady earnings so. I have a lot of research and stuff to do on this idea to get it rolling.