Becoming a sole trader - so many questions!

Faith

I got a job recently where I've been asked to set up as a sole trader and invoice the company, rather than becoming an employee. I have a ton of questions and I'd really appreciate some help!

Firstly, can I register online? I have an ROS account for personal use so does that mean I can register online? Or do I have to fill out the TR1 form? (Or both)

Secondly, just to clarify - as I will earn less than €5000 by the end of 2013, does that mean I will not be liable for PRSI this year? My income will also be less than €4004 so does that mean I won't have to pay any USC also? I won't have to pay any tax for this year, basically?

Thirdly, is there somewhere I can go to get advice on funding opportunities etc that might be available for my own business venture? I'm going to start mental-health related training courses and I've no idea what supports might be available to me.

I have loads more questions but I'll leave it at that for the moment.

Graham

I'd seriously consider having a chat with an accountant. First consult is usually free and he/she will be able to go through all of that and give you an outline of their charges in advance.

Red Nissan

That's not a job.

I would take serious advice on this as you lose all rights as an employee and you are responsible for all your own benefits. Too many of us are already in the so called 'self employed' trap when in fact we are employees in effect.

And you need to be careful you have commercial insurance on your vehicle which is now a commercial and no longer a family car and so on.

There are many pitfalls that are not obvious so seeking professional advice is mandatory I'm afraid. Lots of changes in recent months even, lots of changes coming as the government moves rules and regs around.

For your own sake, You need at least three companies who will employ you on a regular basis and preferably pay on the 15/30 day cycle ~ so between them you are hoping to have a regular income.

ressem

Faith wrote: »

I got a job recently where I've been asked to set up as a sole trader and invoice the company, rather than becoming an employee. I have a ton of questions and I'd really appreciate some help!

Firstly, can I register online? I have an ROSS account for personal use so does that mean I can register online? Or do I have to fill out the TR1 form? (Or both)

Secondly, just to clarify - as I will earn less than €5000 by the end of 2013, does that mean I will not be liable for PRSI this year? My income will also be less than €4004 so does that mean I won't have to pay any USC also? I won't have to pay any tax for this year, basically?

Thirdly, is there somewhere I can go to get advice on funding opportunities etc that might be available for my own business venture? I'm going to start mental-health related training courses and I've no idea what supports might be available to me.

I have loads more questions but I'll leave it at that for the moment.

If your year's income (gross earnings across all employment) is less than 10,036 then you are exempt from USC. The €4004 level for USC was upped in 2012.
Yes PRSI is applied if you are earning over €5000 and self employed.

You have to register using the TR1. It's recommended to set up a separate bank account just for the business, not just use your personal account.

If all of your work income continues to come only from this one company then revenue will not look favourably upon it and might return looking for any employer PRSI taxes etc.

A county enterprise board usually has a startup pack that they can send to you, and put in contact with business advisors and inform of some of the grants. If they don't know of any, just keep in mind that different agencies can provide different information and encouragements.

Faith

Thanks for the rapid replies!

Red Nissan - by professional advice, do you mean an accountant? And I'm not sure what my car has to do with it?

To explain further, I'm working part time with a company (about 12 hours a week). Seeing as I'm setting up as self-employed already, I'm going to take the opportunity to start my own training business, so my income will be coming from a variety of areas.

It's definitely a complicated area, and I would like to get professional advice so is it an accountant I speak to or someone else?

Graham

Accountant would be your best first stop, maybe also talk to your local enterprise board to see what assistance/training they can offer.

Faith

Brilliant, thank you .

Yellow121

Faith, have you been receiving social welfare? If you have is it one of the following? Jobseeker's Allowance, Jobseeker's Benefit, One-Parent Family Payment, Blind Pension Disability Allowance, Carer's Allowance, Farm Assist, Invalidity Pension, Incapacity Supplement, Pre-Retirement Allowance, Widow's/Widower's or Surviving Civil Partner's (Non-Contributory) Pension, Deserted Wife's Benefit or Allowance, Prisoner's Wife's Allowance, or Illness Benefit for 3 or more years. And have you been receiving it for more than 12 months? If so I'll provide more info, if not my info is useless.

Faith

I've been on jobseeker's benefit since July, and it gets cut off shortly anyway, so I don't think I can benefit from any welfare schemes .

Yellow121

The Back to work enterprise scheme would have been perfect for you. Try the enterprise board then, hopefully they'll help. You're working for less than 20 hours per week so you can get some social welfare payment, unless you're working for more than 3 days per week I think it is. You're working for more than 3 days aren't you?

Faith

I know, the BTWE would have been perfect! Social welfare is really confusing for me at the moment. I'm working less than 3 days alright, but my JSB will run out in a few weeks and I don't think I'd get anything if I was means tested (living with my partner :rolleyes: ).

I'll definitely try the enterprise board though!

Yellow121

Either try the enterprise board or dump the partner. :O I don't know the success rate of people trying the enterprise board, I get the impression it's tricky enough. Anybody on this thread get success with them?

Edit: Just to say, I had a quick look through the enterprise boards website and they look for plenty of detail. So if you have a business plan done good but make it as detailed as possible.

ressem

Yellow121 wrote: »

Either try the enterprise board or dump the partner. :O I don't know the success rate of people trying the enterprise board, I get the impression it's tricky enough. Anybody on this thread get success with them?

Edit: Just to say, I had a quick look through the enterprise boards website and they look for plenty of detail. So if you have a business plan done good but make it as detailed as possible.

They will point you towards a mentor to help create a business plan if they are doing their job. Just do the best preparation that you can beforehand.
http://www.westmeath-enterprise.ie/Business-Information/Starting-up-a-Business

Peterdalkey

you should seriously consider doing a "Start your own business course" which should be funded by Social Welfare if you are unemployed. Contact you local Employment Services Office.