How and When to make tax return (self employed)

Cameron326

Hi all have been researching this question. I was self employed (registered as a sole trader) between May - November this year. I took a few hundred euro each month but made a loss overall. When should I file my tax return?

Some people are saying a preliminary one needs to be filed this year while other seems to say by end of 2017 (as 2016 was my first year of business).

Also any idea how much an accountant would charge to do a very simple return? (All I've got is a few handwritten receipts of income, plus rent invoices as expenses). Is it complex to do it yourself through the online system. How long does it take or is better to get an accountant. I just want to get it done as quickly and painlessly as possible.

Also I want to deregister the company name I registered which I traded under as self employed sold trader. Can I do that before filing return or should I wait till after.
Thanks in advance.

professore

Cameron326 wrote: »

Hi all have been researching this question. I was self employed (registered as a sole trader) between May - November this year. I took a few hundred euro each month but made a loss overall. When should I file my tax return?

Some people are saying a preliminary one needs to be filed this year while other seems to say by end of 2017 (as 2016 was my first year of business).

Also any idea how much an accountant would charge to do a very simple return? (All I've got is a few handwritten receipts of income, plus rent invoices as expenses). Is it complex to do it yourself through the online system. How long does it take or is better to get an accountant. I just want to get it done as quickly and painlessly as possible.

Also I want to deregister the company name I registered which I traded under as self employed sold trader. Can I do that before filing return or should I wait till after.
Thanks in advance.

Have a read here: http://www.revenue.ie/en/tax/it/leaflets/it10.html#section7

I'd say you will be able to do a preliminary return of 100% of your liability for 2016 and then do a Form 11 in 2017.

Why do you want to deregister the business name? It's not costing you anything, and might be worth something in the future if someone wants to use it?

Cameron326

Thanks for response. Is the preliminary return obligatory? Is it fairly straightforward to do oneself or is it best to get an accountant to do it. As I said I've just got a few receipts, and rental invoices. And I made a loss so not worried about paying minimum amounts of tax as I didn't make anything!

exaisle

When you say you made a loss but took a few hundred euro each month, did the few hundred euro you took mean that you made the loss (in other words, if you hadn't taken the few hundred euro each month, would you have made a profit)?

There is a difference between an accounting loss and a tax loss. Some expenses are not deductible for tax purposes so where businesses show a loss in their accounts, they would actually be showing a taxable profit. So, although you presumably ended up with less money than when you started, that doesn't necessarily mean that you don't have a tax liability. An accountant would advise.

To answer your questions from your first post:
If you have ceased using the business name, you should inform the Companies Office. (This has no bearing on your taxes).

As you commenced and ceased in business in the same year (2016), you are only legally obliged to make a tax return for 2016.

This wouldn't ordinarily be due until 31st October 2018 but as you ceased trading in 2016 there is no reason why you cannot prepare & submit the Income Tax return for 2016 by 31st October 2017.

If you are satisfied that you'll have no tax liability, then you should not pay any preliminary tax.

Cameron326

Thanks for your detailed reply. I was renting an office at a cost of about €1000 per month. I made approx €400-600 a month by offering services, but still made a significant loss overall. IE €3000+ over the six months I was in business, so I can't conceive I'd have any tax liability.
Anyway, thanks for answering my question so well. One last question -
Is filing self employed return a big/complex job? How much would it cost to get an accountant to file a relatively simple return like mine? Ballpark figure? Thanks.