New startup tax Q

Yurple

Hi,

Been looking through the forums and some things are clear and other things aren't.

I work full time at the moment but setting up my own company. I provide a service and will invoice my customers.

Do I need to be registered as a sole trader or just register my company name ?

Do I charge my customers VAT at the beginning or only when I have over €3000 net sales for the year?

When I let my accountant do my books, will he need to know my income from my full time job?

If anybody can please provide me info on setting up a new business while im in full time employment, especially the bit on taxes and accounting I would really appreciate it!

Thanks so much in advanced

R3al

If you are setting up a company then you will be registering as a company (not a sole trader) a company is its own legal entity

Whether you register for VAT before you hit the revenue thresholds or not is up to you - the main advantage of registering is that you can claim back vat on the stuff you buy for the business, whereas the advantage of not registering is that you will not need to charge your customers VAT which will make your business more competitive, it is up to you to decide which is the best option

As a company is a separate legal entity it is likely that an accountant will only need to know your income from another job if he is doing your own personal tax return

Yurple

Hi thank you so much for your reply.

I did not mean a company, I meant a business. Sole trader would be the best option for me.

allaboutclicks

Hi Yurple, if you're a sole trader you will be filling in a Form 11 and I think you need to put in all your earnings on that form so if your accountant is going to fill that in you'd have to tell him what you're earning in the day job.

Homer

Any idea what your projected revenue will be for the first year? Ball park.. This figure and whether or not you will be buying products that have a vat element will decide whether or not you should set up as a sole trader or limited company.

Yurple

My projected income for the first year will be €15000

and I will not have to buy anything for the business.


a soultrader will do the trick right? I just need to know if i have to charge my customers VAT when I send an invoice.

AndyJB

Yurple wrote: »

My projected income for the first year will be €15000

and I will not have to buy anything for the business.


a soultrader will do the trick right? I just need to know if i have to charge my customers VAT when I send an invoice.

Morning,
Depending on what you're doing you won't have to register for VAT until you're turnover reaches a certain level. Have a look at the Revenue VAT Site for info. I'd also suggest you register for the Revenue On-Line service. It'll take a lot of the pain out of doing your tax returns. They also have an off-line version that allows you enter and correct your returns before submitting them online.

Be sure to keep details of your various business expenses incurred along the way.

If in any doubt be sure to speak with an accountant.

Best of luck.

Yurple

AndyJB wrote: »

Yurple wrote: »

My projected income for the first year will be €15000

and I will not have to buy anything for the business.


a soultrader will do the trick right? I just need to know if i have to charge my customers VAT when I send an invoice.

Morning,
Depending on what you're doing you won't have to register for VAT until you're turnover reaches a certain level. Have a look at the Revenue VAT Site for info. I'd also suggest you register for the Revenue On-Line service. It'll take a lot of the pain out of doing your tax returns. They also have an off-line version that allows you enter and correct your returns before submitting them online.

Be sure to keep details of your various business expenses incurred along the way.

If in any doubt be sure to speak with an accountant.

Best of luck.

Thank you Very much for the reply and the information.

Thanks!!