Advice

Conmc88

Ok here is the story,My brother has opened a pet shop in Limerick city,He was approached by an a accountant just recently and was told to register his shop for tax reasons.(obviously with a sum involved for his services)


Now I was under the impression that this accountant is trying to make a quick buck by scaring my brother with the tax man,I thought that if you were not going to make more than 37500 a year you didnt need to worry about the tax man and for a service its 70000 per annum.

Now I could be completely wrong but I know my brother will be doing well to bring in 18000 this year if he is lucky so can I have year feed back on this situation.

smcgiff

I'm guessing this is a case of Chinese whispers. It's unlikely the accountant TOLD your brother to register with the tax man. He's not an enforcer for the revenue. What he may have said was that he was required to inform the revenue.

Where I think you are going wrong is that you are mixing up vat and income tax. For what it's worth you've the vat registration levels reversed.

Get your brother to Google a TR1 - he can register himself.

Conmc88

cheers mate,

Exactly what is entailed in the tr1 form ...what else dose he need to do instead of him hiring an accountant I could do it for him

Alan Shore

Conmc88 wrote: »

cheers mate,

Exactly what is entailed in the tr1 form ...what else dose he need to do instead of him hiring an accountant I could do it for him

In fairness to your brother do you think that you are doing him any favours by acting on his behalf if you do not know much about it either.

Don't know what the margins are in pet shops but I doubt €18,000 pa is going to be enough. Has he signed a lease without taking any advice. What is the annual insurance, rates costs ect.

Might be worth his while meeting with an accountant most don't charge for an initial meeting. Could save him some money in the longer run.

TheCostumeShop.ie: Ronan

I agree with Alan above. I own a pet shop and if by 18k PA you mean his gross sales, then that is less than 350 per week, or below 70 per working day. Margins on food in our industry are extremely poor, especially since he wouldn't be getting any bulk discounts. It's highly likely he's loosing money if he has any overheads at all to cover.

The 37500 is the VAT threshold. If 18k is his net take home, he has crossed this threshold level and if he isn't register and charging VAT on products he could get in a lot of trouble with revenue and would owe the VAT due even though he didn't charge it to the customers.

It sounds like he should be talking to an accountant for advice, but shop around and hire one based on recommendations not cold calls.