Tax returns for start up company

GregoriChukov

hi there.

Myself and a friend started our own company last March. We have no other employees, just the two of us. We have done PAYE and PRSI tax returns for the last five months but this month we have gotten income and we wish to pay salaries with it.

My questions
1. In the revenue ROS screen under tax returns you only enter the amount of tax to be paid. Where do you do these calculations? Is there a tool for this with revenue? Do you have to show these calculations to revenue or simply keep them in case of an audit?
2. We have work related expenses which have been coming out of our personal accounts. We have receipts for these expenses. How do we claim tax credits for these? Do we claim these as tax credits from our PAYE tax at the end of the year? Or can we take the from money in our business account before paying salary to repay ourselves?
3. In ROS, do I have to submit company income and expenses? Or do I simply keep these accounts in case I am audited?

Thank you so much for listening to this and for any advice,

It is very much appreciated,

Laura

J.Ryan

GregoriChukov wrote: »

hi there.

Myself and a friend started our own company last March. We have no other employees, just the two of us. We have done PAYE and PRSI tax returns for the last five months but this month we have gotten income and we wish to pay salaries with it.

My questions
1. In the revenue ROS screen under tax returns you only enter the amount of tax to be paid. Where do you do these calculations? Is there a tool for this with revenue? Do you have to show these calculations to revenue or simply keep them in case of an audit?

When you registered as employees you should have received a certificate of tax credits and standard rate cut-off points, you will need these together with the PRSI tables to calculate the deductions.

You could buy a payroll package, I generally recommend modsnip no avertisingto my clients (and I also use it).

You will have to keep your calculations for 6 years

GregoriChukov wrote: »

2. We have work related expenses which have been coming out of our personal accounts. We have receipts for these expenses. How do we claim tax credits for these? Do we claim these as tax credits from our PAYE tax at the end of the year? Or can we take the from money in our business account before paying salary to repay ourselves?

You don't claim tax credits, submit them to the company for re-imbursement, get them approved by another director (you approve hers, she approves yours), once they are approved the company can pay you for them any time.

GregoriChukov wrote: »

3. In ROS, do I have to submit company income and expenses? Or do I simply keep these accounts in case I am audited?

Thank you so much for listening to this and for any advice,

It is very much appreciated,

Laura

Under company law you have to prepare a set of accounts every year, you may be exempt from audit, but they still need to be prepared in accordance with the companies acts and lodged into the CRO (& kept for the Revenue Commissioners in case of an audit).



Hope this helps, feel free to mail me if you need to

Mr. Incognito

Seek professional advice

Read the charter.

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