First tax return on new business. help if you can!!

condoh22

Total noob question here, I've registered as self employed in august and I've only had a relitively small income so far.

Do I need to file tax returns by the end of this month? I've read that if you are in your first year you can wait till your second to file for the first and second years but I could be misunderstanding.

Also the income tax paid from profit after expenses, is this based on the job itself (cost of goods sold etc.) or is expenditure by the company (equipment, cost of new products for sale etc.) factored into this?

Any help is much appreciated, I'm educating myself at the moment on tax responsibilities as I guess I didn't understand it aswell as I thought. Money is tight so I am hoping I can do this without an accountant for this year anyway.

Thanks.

Mellio

condoh22 wrote: »

Total noob question here, I've registered as self employed in august and I've only had a relitively small income so far.

Have you registered to return online through ROS, in my experience this is the handiest way to do your returns and pay your taxes.


Do I need to file tax returns by the end of this month? I've read that if you are in your first year you can wait till your second to file for the first and second years but I could be misunderstanding.

I presume you registered in Aug'12 therefore your first return will be due by 31 Oct 2013 where you will file your 2012 Income tax return for the period Aug-Dec'12. You are also expected to pay preliminary tax for 2013. There is a bit more to it which you will need get some proper advise to be honest.

Also the income tax paid from profit after expenses, is this based on the job itself (cost of goods sold etc.) or is expenditure by the company (equipment, cost of new products for sale etc.) factored into this?

Again you will need to get proper advise but your profits/losses are made up from Turnover less your purchases less any related business expenses for the period Aug-Dec'12. Equipment would be a capital expense and therefore would need to be taken out of your profit and loss calculation.

Any help is much appreciated, I'm educating myself at the moment on tax
responsibilities as I guess I didn't understand it aswell as I thought. Money is tight so I am hoping I can do this without an accountant for this year anyway.

Thanks.

What I have mentioned above is only a small part of how to deal with your Income tax returns and there is a lot more too it, not really something that can be discussed easily on an open forum like this.

The only thing I can suggest is getting a taxation book for 2012 and use the revenue website for further help.

Shane732

I'd recommend you get professional assistance.