Way over my head!

trev123

Small bit of Advice needed:

I am a fulltime student and part time worker based in Dublin.
In the summer of 2010 I was a bit bored when college finished for the summer so I set up my own soletrader business.
(Basically all i did was I registered a business name with the CRO to buy my .ie domain and set up a business bank account account under my registered business name with Ulster Bank as i thought this would be good practice)

Over the course of the last month of the summer of 2010 I carried out 3 jobs for 3 business small business clients amounting to a combined turnover of about 900euro. Which I thought was quite good seeing as this was all just for fun. All 3 jobs amounting to 900euro were payed by cheques and lodged into the business account under my business name.

At the time I did not understand what VAT was or that you had to be registered for VAT to charge VAT. So I added VAT to these three sales as I thought that it was a requirement.
When the summer was over I did no more business as my time was taken up wth college. To this day the 900euro which is slowly depreciating with bank charges is sitting in my business account.

I completely forgot about this experimentation of mine until recently when we learned about VAT in college and the fact that you must only charge VAT if you are VAT registered, and that disobeying this carries large fines. I would happily pay this VAT that I had collected (which amounts to only about 150euro but am afraid to approach revenue as I fear I might be prosecuted for charging VAT when not registered.)

Given that this is only a really small sum of VAT collected (150-200euro) and I never actually registered for VAT or tax as this was a part time low turnover job - do you think I can forget about this or should I take action and contact Revenue and try to explain? I am starting to get very concerned that I have got myself into big trouble. (FYI The 900 euro that I generated is still sitting in the business account untouched...)

Would really appreciate some feedback or advice - Am afraid that I am going to have Revenue chasing me and get a bad tax prosecution or a hefty fine.

Citizenpain

1. Return the VAT to the people who paid you.
2. I assume you have not registered the soletrader activity for Tax?

trev123

Citizenpain wrote: »

2. I assume you have not registered the soletrader activity for Tax?

No I did not...