Self Employed Income Tax Return

kitten_k · 21-09-2011 10:13am #1

A friend of mine is completing his tax return for y/e 31/12/2010. He has sales of €40,326 and purchases of €10,582, therefore drawings of €29,744. He is single with no children.

How does he go about computing his tax liability?

MBateson · 21-09-2011 10:25am

You could try downloading the ROS offline software and then the Form 11 template and entering his details in that.

Is this his first tax return? There will be rules of commencement to be considered.

Did he buy equipment etc. for the business?

It would be worth having at least one meeting with an accountant to go through these various things and others.

kitten_k · 21-09-2011 10:47am

He completed a nil return for 2008 and then for 2009 he completed it based on figures from July to Sept. He is using a full years figues this year.

He bought a van for the business but has not capitalised it.

Fabo · 22-09-2011 6:20pm

sales less cost of sales gives profit. this is taxable but you are allowed 12.5% allowance on the cost of the van as a deduction. you should capitalise the van otherwise your profits in the year of purchase will be distorted

kennyb3 · 23-09-2011 9:41am

Also there is a difference between purchases and expenses.

And i'll bet my life drawings isnt 29,774. (that would be gross profit or even net profit depending on your classifications)

If he hasnt capitalised the van i'd be worried what else he is doing wrong.

I'd advise him to give someone a couple of hundred euro to look over it and make sure its done right.

Self Employed Income Tax Return

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