Proper order please folks

donfers

Person applies for BTWEA (back to work enterprise allowance) as they decide they want to become a sole trader

person knows they won't have huge turnover first year so decides not to register for VAT for the time being

person meets BTWEA people who say, idea/business plan is fine, go ahead with it - they say it'll take a few weeks for person to get processed on to the scheme

person registers with CRO while awaiting for BTWEA to process details

person begins work on website/marketing etc while awaiting for BTWEA to process details

person already has client and has done some work for them while awaiting for BTWEA to process details

....................

person has to invoice client at end of month but still is awaiting for BTWEA to process details

What should I, being this person, do with regard to registering for tax? I know I won't earn big money in the first year and will probably get most of it back but when should I go to meet the revenue people and fill out the relevant forms, should I wait until I am processed on BTWEA or should I do it before issuing first invoice or does it matter when I do it?

Also there is the issue of opening a business bank account for clients to pay money into? I assume this is relatively straighforward

Just wandering what is the proper order for all of this

smeharg

Congratulations on starting your new business.

In my experience, the BTWEA people aren't exactly the most speedy in processing these applications. While technically you probably shouldn't start until you get final clearance, you also need to be practical.

Firstly, you don't need to go to see Revenue. You need to register for self assessed income tax. You do this by completing form TR1 available on the Revenue website. There's no urgency to do this, though, and you can still issue invoices despite not being registered.

If you're operating under a name other than your own personal name you'll also need to register a business name with the Companies Registration Office.

The bank account mightn't be as straighforward. A few clients of mine have had difficulty opening an account - but have got there in the end. I've also seen a few threads on here about people having difficulties opening accounts. If you do have difficulties (and it seems to depend on the branch) make a nuisance of yourself, complain to the manager etc.

donfers

smeharg wrote: »

Congratulations on starting your new business.

In my experience, the BTWEA people aren't exactly the most speedy in processing these applications. While technically you probably shouldn't start until you get final clearance, you also need to be practical.

Firstly, you don't need to go to see Revenue. You need to register for self assessed income tax. You do this by completing form TR1 available on the Revenue website. There's no urgency to do this, though, and you can still issue invoices despite not being registered.

If you're operating under a name other than your own personal name you'll also need to register a business name with the Companies Registration Office.

The bank account mightn't be as straighforward. A few clients of mine have had difficulty opening an account - but have got there in the end. I've also seen a few threads on here about people having difficulties opening accounts. If you do have difficulties (and it seems to depend on the branch) make a nuisance of yourself, complain to the manager etc.

thanks a lot for that advice

incidentally what kind of problems do people opening new business accounts typically run into?

smeharg

Chances are you'll be able to open an account without any problem. I've seen banks requiring certificates of business names where one wasn't necessary and taking a bit of convincing that was the case. The most problematic was a client that had missed a few DDs on his personal account and was in arrears with his mortgage, and the bank refused to open a business account.

dearg lady

Sorry to jump in, but just wondering what are the specific advantages of opening a business account? i'm surprised to see that some people have had trouble opening one.

smeharg

dearg lady wrote: »

Sorry to jump in, but just wondering what are the specific advantages of opening a business account? i'm surprised to see that some people have had trouble opening one.

What have I started!!

I've come across a few people who have had a little difficulty opening an account. That's out of the thousands that open accounts annually with no problems.

I don't think there is any big problem here.

The advantage of opening a business account is that it helps keep a divide between business and personal transactions.

dearg lady

smeharg wrote: »

What have I started!!

I've come across a few people who have had a little difficulty opening an account. That's out of the thousands that open accounts annually with no problems.

I don't think there is any big problem here.

The advantage of opening a business account is that it helps keep a divide between business and personal transactions.

ha, sorry, it's just something that popped into my head! But I mean, what is the advantage of having a business account over just having a separate personal account? For a small business I mean

smeharg

Probably none for a very small business.

But if the bank discovered that they were missing out on fees and I'm sure they'd switch it to a business account.