Some questions

barura

So I'm seriously considering getting back into a profession that I was once in. Basically being a sound engineer who supplies and operates the equipment. Now some questions:

1. If I use my car to transport the equipment, is this allowed and do I have to declare it as a vehicle being used for transporting equipment and can I declare the petrol and tax as expenses?

2. I already own a fair amount of my equipment already, do I have to declare this when I start the business?

3. Sometimes it would be favourable to sub contract others to fill in gigs that I would be doing, so long as it's paid by cheque and invoiced from the party I get to do the gig, can I just declare it as an expense?

4. If I get a job as well as this, do I just keep all my wage slips and sort it all out at the end of the tax year in December?

5. If I get a loan to start this business off, that is my expenses each month or do I just do it as a lump of all the stuff I purchase at the beginning?

hope that all makes sense! And thanks in advance to anyone who replies.

The Apprentice

1.If I use my car to transport the equipment, is this allowed and do I have to declare it as a vehicle being used for transporting equipment and can I declare the petrol and tax as expenses? yes u can but be practical, a friend of mine tried to insure a 2 seater sports car for his buisness.. If its only minor stuff and a 4 door car u probably will be ok, and yes.. all insurance and tax petrol are tax writable

2. I already own a fair amount of my equipment already, do I have to declare this when I start the business? Well .. declare it to who, u can say u do that the equipment and i dont think its tax detuctable unless u were showing for the last 1-2years (i think.. look it up) that u were going to open this business with this stuff with receipts etc, if u did u could claim it back..

3. Sometimes it would be favourable to sub contract others to fill in gigs that I would be doing, so long as it's paid by cheque and invoiced from the party I get to do the gig, can I just declare it as an expense? Cheque or cash doesnt really matter, just as long as its recorded for revenue reasons.
4. If I get a job as well as this, do I just keep all my wage slips and sort it all out at the end of the tax year in December?
in what respect??
Your job is your job, youll get taxed and paid that every week without fail, this business venture of yours might never pay you as a full time staff memeber for 2 yrs etc.. So just get your montly accounts from the accountant.
And if im mistaken there is an incentives for the first 1-2 years for new business owners ... look into that more, bank of ireland do free business accounts + mentoring.. I know it exists but just not very knowlegable on it.
5. If I get a loan to start this business off, that is my expenses each month or do I just do it as a lump of all the stuff I purchase at the beginning?


Well the lump sum u speak off in accounting is called capitol, tis basically what u had to start the business.. ive done advanted accounting to a degree level and i cant ****ing remember, ive googled it and got nothing quickly so .. 2am .. im off 2 bed dude


Thanks

barura

Thanks! That's pretty much everything I was asking. Anyone else's input would be helpful as well, though.

DubTony

barura wrote: »

So I'm seriously considering getting back into a profession that I was once in. Basically being a sound engineer who supplies and operates the equipment. Now some questions:

1. If I use my car to transport the equipment, is this allowed and do I have to declare it as a vehicle being used for transporting equipment and can I declare the petrol and tax as expenses?

Your insurance company will have an issue with this. They could void your insurance if you have an accident while transporting goods.

Eoin

DubTony wrote: »

Your insurance company will have an issue with this. They could void your insurance if you have an accident while transporting goods.

If you don't get Class 2 insurance, that's a concern alright, but it shouldn't cost that much more.

barura

Ah right! So if I got insured for that, there would be no problem so?

Eoin

From an insurance point of view, yeah. I'd imagine that the most cost efficient thing you could get is probably a small diesel car/van, and that would attract commercial tax rates. But then you're not supposed to use it for carrying passengers or for personal use (I think).

barura

Wonderful stuff. I'll have to get on that so. Being legitimate is a lot trickier than it sounds. It's funny that cash in hand is so common, but if I'm able to invoice and take cheques, in the long run, is better for business. Even if it is on the side. I'm sure that when the dust has settled it will work out more profitable.

One thing that pops into my mind is that if you do more than one job, can you just say you are self employed and do 'misc'. I was thinking of mixing this job with hackneying for when it's quiet. Or is that just silly?

mari2222

you need to look at the start your own business guide or self-employed tax guides on any of the bank or Revenue commissioner websites

Axwell

The apprentice, I have edited your post. Please dont suggest using dodgey/crooked service providers or give other bad advice like that. Also please try not to use txt speak on boards,

Thanks.

The Apprentice

Well if u do hackeyning and stay under the radar your fine, doing the other saturday night etc but if you literally want to go legitimate it will need its own set of books, finances and u will need seperate accounts.

I dont really think its silly, there is good money to be made in that area only its a curse with the drunken, my friends family have a business but it does pay very well for the weekend rushes.

I do know that the insurance is expensive do .. dont quote me on it but it was around 3-4k another hackney said.. Might be worth looking at.

The Apprentice

Axwell wrote: »

Also please try not to use txt speak on boards,

Thanks.

Point noted moderator and its text speech !!
I shall write eloquently for you in future.

Eoin

The Apprentice wrote: »

I do know that the insurance is expensive do .. dont quote me on it but it was around 3-4k another hackney said.. Might be worth looking at.

I've heard similar figures as well. And then you need to have a car that's suitable for passengers (and maybe luggage) as well as carrying around your equipment for your other work.

Again, I wouldn't recommend going under the radar, as that will affect your insurance should something happen. While the insurance company will pay out to 3rd parties, they can then pursue you for the costs.

barura

mari2222 wrote: »

you need to look at the start your own business guide or self-employed tax guides on any of the bank or Revenue commissioner websites

I have done that, these are just some questions that I couldn't find a clear answer to. But I get what your saying; read more into it, right?

The Apprentice wrote: »

Well if u do hackeyning and stay under the radar your fine, doing the other saturday night etc but if you literally want to go legitimate it will need its own set of books, finances and u will need seperate accounts.

I dont really think its silly, there is good money to be made in that area only its a curse with the drunken, my friends family have a business but it does pay very well for the weekend rushes.

I do know that the insurance is expensive do .. dont quote me on it but it was around 3-4k another hackney said.. Might be worth looking at.

If the insurance covers both aspects of my business plan then I don't see a problem in paying that amount. :pac:

Axwell

The Apprentice wrote: »

Point noted moderator and its text speech !!
I shall write eloquently for you in future.

No it is actually 'txt speak'..its frowned upon on boards so I am pointing it out for your sake. You will get warnings or a ban for using it on boards anywhere, just trying to do you a favour.

The Apprentice

Barura the commerical insurance for the audio business will most definetely not cover you to drive passengers in a taxi form from a - b for money.

The taxi insurance will cover you for passengers but i don't really know about equipment for the audio business, a quick call to any insurance company would clarify this but they may differ with policys..

A taxi licence does cover you for basic good insurance whilst you are on a hackney run, such as carrying shopping for customers, buggys, golf clubs. Ive tried ringing my hackney friend he,ll get back to me soon i,ll let u know what his policy entails.

barura

Good heavens sir, thank you for looking into it so much! If it's not viable, I won't do it. Hopefully I'll gain some ground on the audio end of things so I won't have to resort to being a hackney. If it comes to it, I'll just work part time as well some where to keep my head afloat!

Axwell

An insurance company will be able to tell you for definite but if you are looking to get insured with regard to moving audio goods etc then they will tell you that you need a commerical insurance policy. But then a commerical insurance policy can only be applied to a vehicle that doesnt contain passenger seats in the back, so doing the hackney thing wouldnt be possible as you would be breaching your policy.

The Apprentice

No problem, also if its not viable for you because of financial constraints to get your own transport and insurance im sure you will find employment as a taxi driver in your region for someone else.
You can really guage what the market is like without jumping in head first like many ive seen in my area do.

barura

@Axwell
Aw man, this is absurd! So in effect, I need a commercial vehicle for moving stuff around even if it is just for rental? At least to have everything "above board"? Good grief.

The Apprentice wrote: »

No problem, also if its not viable for you because of financial constraints to get your own transport and insurance im sure you will find employment as a taxi driver in your region for someone else.
You can really guage what the market is like without jumping in head first like many ive seen in my area do.

My main focus would be to work as a sound engineer, but every little helps, you know?

Axwell

barura wrote: »

@Axwell
Aw man, this is absurd! So in effect, I need a commercial vehicle for moving stuff around even if it is just for rental? At least to have everything "above board"? Good grief.

Well like I said ring an insurance company to be sure but it could affect your insurance if you were carrying equipment and had an accident as your policy on a personal policy states the car cant be used for transporting goods etc, and I dont think you are allowed get a commerical policy on a car/van with seats in the back otherwise its not classed as a commercial vehicle.

barura

Right oh, I'll do that tomorrow when I'm getting my car taxed. Thanks for the help! I'll post back with my results in case other people were wondering what the case is in this situation.

thanks everyone for their input so far it has been helpful.

smcgiff

Hello Op,

Best of luck with your venture.

The accounting forum might be somewhere you want to get further advice if anything above (I've only skim read the various responses) didn't fully answer your questions.

From a quick read you've a lot of material purchased pre trading.

You could form a company (which is a good thing to do in itself for several reasons) and you could then sell the equipment to the company.

1. This most likely would not have capital gains tax implications as you'd be selling them for less than what you bought them for (You could even use up your Capital Gains allowance).

2. The company could then use them as expenses.

This of course would only be suitable in certain circumstances, such as long term trade.

barura

I'll be purchasing a lot of the stuff new for peace of mind. Thanks for the heads up about creating a company though, how long is long term trade though?

smcgiff

barura wrote: »

Thanks for the heads up about creating a company though, how long is long term trade though?

You wouldn't set up a company if it was only going to trade for a few months or if it was only a sideline issue, imo.

barura

smcgiff wrote: »

You wouldn't set up a company if it was only going to trade for a few months or if it was only a sideline issue, imo.

Fantastic stuff. I would be doing this initially for 6-9 months so would consider it if all works out.

TylerIE

One of Chill.ie's insurers (Setanta I think) offer full Class 2 as standard on all their car policies. They also offer open drive.

They only sell through brokers, a list of which can be found here.

Eoin

Axwell wrote: »

Well like I said ring an insurance company to be sure but it could affect your insurance if you were carrying equipment and had an accident as your policy on a personal policy states the car cant be used for transporting goods etc, and I dont think you are allowed get a commerical policy on a car/van with seats in the back otherwise its not classed as a commercial vehicle.

I am pretty sure you can get class 2 insurance on a personal vehicle which covers you for carrying goods around, as well as work travel. This is distinct from class 1 insurance which covers you only for social, domestic and commuting. You will still pay standard motor tax.

The problem is if you want commercial motor tax - this is when you need a commercial vehicle with no back seats etc. But that's not supposed to be used for personal use or carrying people around.