tax for new business

Balz

Boring question, but does anyone know, I am starting my own website business and I had to register the company as a sole trader to buy the domain name, The site isnt ready yet and wont be for a while but do I have o pay taxif I have not made any sales yet?

Shield

Moved from Newbies & FAQ to Entrepreneurial & Business Management with redirect expiring in 7 days.

DubTony

If you're talking about tax on the design and supply of the web site (VAT) or the registration of the domain name, Yes you do. The provider of the service is required to charge VAT on his sales.

If you're talking about tax on sales, well, if there are no sales you've nobody to charge VAT to, so, in that case, No.

IpreDictDeatH

I'm going to jump in here too if ye's don't mind.

I was hoping to maybe one day get into the wholesale trade. Ive been looking around and it's very appealing to me. I was wondering about how to go about setting up a new business myself. None of the wholesalers will deal with you unless you're a registered business, but i was afraid of red tape and costs that may go along with setting up a new business?

So am i correct in thinking anybody can register a new business, and just have it sit there until you make a sale, and you don't have to pay any other charge?

What about VAT. I thought you had to be earning thousands before you register for VAT? So it's kinda pointless registering for it if you're only making a few sales? But wholesalers wont deal with you unless you're a registered company. So to get the ball rolling and make a few sales you gotta register as a company, and by default register and declare for VAT?

ssbob

IpreDictDeatH wrote: »

I was hoping to maybe one day get into the wholesale trade. Ive been looking around and it's very appealing to me. I was wondering about how to go about setting up a new business myself. None of the wholesalers will deal with you unless you're a registered business, but i was afraid of red tape and costs that may go along with setting up a new business?

So am i correct in thinking anybody can register a new business, and just have it sit there until you make a sale, and you don't have to pay any other charge?

What about VAT. I thought you had to be earning thousands before you register for VAT? So it's kinda pointless registering for it if you're only making a few sales? But wholesalers wont deal with you unless you're a registered company. So to get the ball rolling and make a few sales you gotta register as a company, and by default register and declare for VAT?

Anyone can register as a business(with the CRO) however you need to make the choice whether you want to be a sole trader or ltd company(when starting off sole trader is the way to go) however when registering your company you do not need to register for tax with the revenue until you start trading.

As for VAT, you do not need to register unless you feel that your sales are going to exceed €37,500, any wholesaler who is in business will understand that once you explain it to them.

Let me know if you need any more info.

IpreDictDeatH

ssbob wrote: »

Anyone can register as a business(with the CRO) however you need to make the choice whether you want to be a sole trader or ltd company(when starting off sole trader is the way to go) however when registering your company you do not need to register for tax with the revenue until you start trading.

As for VAT, you do not need to register unless you feel that your sales are going to exceed €37,500, any wholesaler who is in business will understand that once you explain it to them.

Let me know if you need any more info.

Thats all very helpful, and kind of you. Thanks.

I've been wanting to trade for myself for years, but im in a nice comfy job and i think thats been holding me back. I work in retail managment so the interest in buying and selling is there. I was hoping it would be possible to test the waters without having to leave my current job and concentrate totally on a new business.

Id like to set up a company, and still stay in my job. Does that have any tax credit implications, or anything else i should be aware of? My plan would be to set up a company, and have it there to do the odd bit of trading if and when i came across a good oportunity. That means that i wouldnt be using the business on a daily basis, just if i came across a product i thought i could shift then i could act quickly, as opposed to realising a hole in the market and then having to set about the task of setting up a business to act on it. Id be afraid the opportunity would be lost.

A mate of mine recently set up as a sole trader so im going to go ask him. and also visit the citizen info website etc... If you can think of any other place i should go for info please let me know.

Cheers.

Marsden

IpreDictDeatH wrote: »

None of the wholesalers will deal with you unless you're a registered business

Not exactly true, some wholesalers are happy to deal with cash customers. Although it depends on your industry.

A friend of mine realized this too late and had to deal with the tax forms and VAT registration and in the end made no money. She could of done all of this without registering with the CRO. Test the waters first if you can.

HellFireClub

Balz wrote: »

Boring question, but does anyone know, I am starting my own website business and I had to register the company as a sole trader to buy the domain name, The site isnt ready yet and wont be for a while but do I have o pay taxif I have not made any sales yet?

No, tax is the last thing you'll need to worry about, until you start selling stuff. You might need to apply for a VAT number and pencil in 3-6 months before the PS goons in Revenue will manage to get that together for you.

ssbob

HellFireClub wrote: »

No, tax is the last thing you'll need to worry about, until you start selling stuff. You might need to apply for a VAT number and pencil in 3-6 months before the PS goons in Revenue will manage to get that together for you.

This is wrong, they normally take 4-6 weeks once you have all the correct paper work.

IMO you should register as a sole trader with the CRO and register for Income Tax as a sole trader with the revenue. It will not effect your own PAYE job, but you need to account for taxes at the year end which is quite simple, just keep track of all income and business related expenses.

IpreDictDeatH

ssbob wrote: »

IMO you should register as a sole trader with the CRO and register for Income Tax as a sole trader with the revenue. It will not effect your own PAYE job, but you need to account for taxes at the year end which is quite simple, just keep track of all income and business related expenses.

Hey ive one more question in relation to this. I think i have my plan finalised but ive heard that being a self imployed sends alarm bells to the bank manager if you're applying for a mortgage. I was wondering, if i stayed in my full time employment job, but was also registered as a sole trader for a bit on the side, would that negetively affect my mortgage chances in the future?

Marsden

IpreDictDeatH wrote: »

Hey ive one more question in relation to this. I think i have my plan finalised but ive heard that being a self imployed sends alarm bells to the bank manager if you're applying for a mortgage. I was wondering, if i stayed in my full time employment job, but was also registered as a sole trader for a bit on the side, would that negetively affect my mortgage chances in the future?

No, it wouldn't give you less credibility for a mortgage in a banks eyes as you retained your full-time job, and if it works out well after filing tax returns you would be able to borrow more for your mortgage.