Sole Trader Advice

fitnessguru

Hi there, I'm looking for advice please. I've been running a fitness class approx nine months of the year for the past two years. It was really a hobby twice per week for two hours with approx twenty students. I have quite recently become unemployed and with not much on the horizon I am looking at expanding the fitness classes and hopefully making it my job. To date I haven't declared any income (which to be fair after rent and insurance amounted to €100 or less weekly approx 34 weeks of the year) How do I go about becoming a sole trader and registering as a "kosher" business? Do I need to open a separate bank account purely for the income and expenditure of the business? Can I register as a sole trader using my own name or do I need a business name?
Also nervous that revenue (when I do register) will discover that I have been doing these classes for two years without declaring any of the income.
I now know that of course I should have registered as soon as I started the classes but I suppose I wasn't even sure it would work out for me so like many things, it went on the long finger!
Thanks in advance for any advice..

Howjoe1

It's quiet possible that after all allowable expenses you have very little net profit. then you have tax credits to offset, so liability might be little or nothing. Best solution is to register and deal with back year returns for peace of mind.

Based on info provided it should be relatively painless to correct matters, so I wouldn't be over stressing about things.

jimmii

How much taxable income are we looking at? You should really declare that income retrospectively and pay the tax due on that. Revenue obviously aren't going to be happy with someone not declaring tax for two years but in the long term its going to be better than them finding it out independently.

Going forward the best thing is to register as a business and declare all income to date. As mentioned already its probably less than you imagine and its going to mean its going to be one less thing to worry about in the future!

From what I see you are jumping in at the right time I don't do the classes myself but a lot of the classes at my gym the growth seems be massive the ones that were maybe 8 or 9 people a year ago are now full classes on back to back nights now so definitely seems to be a growth area! Good luck with it!

fitnessguru

How would I deal with back year returns? I didn't exactly keep records... This was a pay as you go (cash) venture. Now I am stressed! Help!!

Shoppingbike

Hi if you are unemployed and claiming jobseekers maybe enquire about the back to work or short term enterprise allowance? If you are accepted you will keep your jobseekers while you are starting up your business. They will also give advice on registering as a sole trader and funding is available for advertising, insurance, equipment

In my experience, it's an advantage that you have managed to make some money already as it would seem to a viable business proposition - I don't think the business advisors are out to catch people for past income. As far as declaring past income for tax, if it arises - deal with it then I wouldn't get too worried. It's sounds like you're already halfway there as you have clients, best of luck with it.

There's more info on the scheme on the citizens information website and others experiences good and bad can be found elsewhere on here.

fitnessguru

Thanks for the info Shoppingbike. I am currently unemployed but unfortunately not entitled to SW as I exceed the means test.
I suppose the beauty of a venture like this is that there's next to no cost in setting up and getting going. All that's really involved is locating a suitable premises, hiring it and off you go!
So you reckon register as a sole trader and then what? Would I be able to keep my own accounts and submit my own returns or should I find an accountant?

goz83

fitnessguru wrote: »

Thanks for the info Shoppingbike. I am currently unemployed but unfortunately not entitled to SW as I exceed the means test.
I suppose the beauty of a venture like this is that there's next to no cost in setting up and getting going. All that's really involved is locating a suitable premises, hiring it and off you go!
So you reckon register as a sole trader and then what? Would I be able to keep my own accounts and submit my own returns or should I find an accountant?

For something small scale like this, keep a record of what you take in and what you spend. You should be able to do the return yourself, especially with the help of revenue, who have given me a hand at times when I rang.

Having a FB like page will cost you nothing and advertising on free ad sites. I've built a couple of gym websites and the owners all started off where you are now.

Mrs OBumble

fitnessguru wrote: »

I suppose the beauty of a venture like this is that there's next to no cost in setting up and getting going. All that's really involved is locating a suitable premises, hiring it and off you go!

For a fitness class, I think that you need public liability insurance. Imagine what would happen if a lawyer injured themself in your class and decided to sue you for it.

I'm surprised that venues will even rent to you without seeing your insurance paperwork.

fitnessguru

Mrs OBumble wrote: »

For a fitness class, I think that you need public liability insurance. Imagine what would happen if a lawyer injured themself in your class and decided to sue you for it.

I'm surprised that venues will even rent to you without seeing your insurance paperwork.

Of course I have public liability insurance! Apologies if you thought I didn't.