Greenhorn freelancer asks taxation questions

IcarusPlus

Hi all,

Here's my situation: I'm leaving full-time office employment to pursue partly, or potentially fully, freelance work in a few different fields. Hopefully, however, my freelance work will supplement a full-time position that allows me to work online, from home.

Entering this new arena of self-employment, I am left bewildered by the vast swathes of tax legislation I need to get to grips with.

If any of you chaps/chapettes could help me with my questions below, or point me in the direction of a useful resource, I would be much obliged:

• Do I have to officially register with the Revenue Office that I am self-employed? In the long term, would it be beneficial to register as a limited company?

• Tax, I presume, is paid in one lump sum at the end of each year. Is it advised, then, that I open up a new bank account to filter off portions of my income as I'm paid so it's all ready to wire through when the taxman cometh?

• Are there any tax breaks for self-employed freelancers? Or is it the complete opposite?

• Following on from that, are there any methods I could employ to conserve as much of my income as possible from taxation?

Thanks very much in advance!

swanvill

Hi,
Some brief answers for your questions.

•Do I have to officially register with the Revenue Office that I am self-employed? No unless you may have to register for VAT but that depends on your expected income
In the long term, would it be beneficial to register as a limited company? yes but you would need to consider do you need limited liability versus additional admin work for keeping a company & do you have a second person that you trust to be a director with you?
•Tax, I presume, is paid in one lump sum at the end of each year. Is it advised, then, that I open up a new bank account to filter off portions of my income as I'm paid so it's all ready to wire through when the taxman cometh? Yes that would be wise preferably a demand savings account. You should aim for 20% of your income saved.
•Are there any tax breaks for self-employed freelancers? Or is it the complete opposite? Yes there are more scope for tax savings as self employed person. The accountant you hire will give you more information
•Following on from that, are there any methods I could employ to conserve as much of my income as possible from taxation? Yes your accountant will advise you.

Best of luck with your new ventures.

Sean.

mozattack

Speak to an accountant. That is what they are there for.