Filing income tax for registered sole trader

schmooschmoo

Hopefully this is a simple one:

I registered a business name as a sole-trader in 2017 with the CRO for the potential to earn money on a project. This didn't materialise but I'd like to keep the name going for the same reason.

The project has zero activity (income or expenditure) but I assume I still need to register it with Revenue and file income tax (Form11) declarations despite nothing coming in or out?

I doubt it makes a difference but I'm also an employee and have separately been earning some small income as a sole-trader under my own name (distinct from the registered business name and project mentioned) since last year, which I'll be filing TR1 with with Revenue before November. I'm basically wondering if I also need to file Form11s for the registered business name with zero activity also and I'm assuming the answer is yes. Just need clarification. Thanks.

schmooschmoo

Nobody? I would have thought it wasn't unheard of to register a sole trader name, as a precaution, without certainty of commencing trading under it. Maybe it's rarer than I thought.

Calahonda52

The business name is not a legal entity.
Neither is it unique to you, i.e. there can be many business names like yours
why can't you just add its numbers, when you have some, to your own sole trader figures:
see extract below: from https://www.layahealthcare.ie

I went through this example with CRO/CB

Your Insurance is provided by Elips Insurance Limited trading as Laya Healthcare. Laya Healthcare Limited, trading as Laya Healthcare and Laya Life, is regulated by the Central Bank of Ireland. ....
Laya Healthcare Limited trading as Laya Life is regulated by the Central Bank of Ireland. Travel insurance provided by AIG Europe Limited.

schmooschmoo

Calahonda52 wrote: »

why can't you just add its numbers, when you have some, to your own sole trader figures:
see extract below: from https://www.layahealthcare.ie

Thanks for the input and example Calahonda. It's personal preference primarily for two reasons:

I've nothing to hide or anything untoward but I'm not much of a fan of casually having a very open breadcrumb trail of my CV that are out of my control. e.g. I've little control over whether Google would rank a project I may want to forget as a top hit for my name in five years time. I try and plan long-term for these things. I'm aware a personal name is always retrievable for sole traders (which is a good thing) but it's a night and day difference in terms of how they would rank for name association. As you can appreciate, CVs are important and I prefer the old fashioned method of personally deciding the priority and significance of different projects on mine.

Secondly, not to the level of a llc or similar but it adds a presence more appropriate to the project than an individual running it. Its market, functionality and branding stands with much bigger projects and I think some would be surprised it's a one-man show. Nowhere is it stated that it's not an individual running it or similar but I'm content that this is not as immediately obvious as having a trading statement similar to your example (again, I'm aware that anybody who actually goes looking for such things can easily find the name of who runs a business and to what capacity).

Furthermore, it feels easier for potential new banking accounts, etc. I think I'm quite unusual in this regard but I really forward plan these things and like projects to be ready to scale instantly if they take off. There was little investment in setting it up as a potential sole trader business so I went for it. That kind of organisation feels far easier and less work than doing it all in stages later when it's more involved - e.g. sort a problem as best you can at the root rather than backtracking and changing parts later.

I'm now thinking that absolutely nobody else does this if the tumbleweeds here are a sign? And apologies for digressing massively but the question was asked. My original question still remains but it looks unlikely that anybody else does this. I think I'll just file the returns and be happy to answer any questions about why there's 0 income and expenditure if asked.

Ciaran

schmooschmoo wrote: »

I'm basically wondering if I also need to file Form11s for the registered business name with zero activity also and I'm assuming the answer is yes. Just need clarification. Thanks.

To be clear, you would file a single Form 11 for yourself and include all your trades and income on it, there isn't a separate return for this trading name. If this trade hasn't commenced, there's no need to include it on a return.

schmooschmoo

Thanks a million Ciaran. I'd actually just rang Revenue and they confirmed the same. In case this is useful for anyone else in the future I'll clarify that if a business name has been registered with the CRO but never registered for taxation AND never traded under, it doesn't need to have income tax filed. This is my situation. If either of these stipulations change, it does.

So as far as I know, it's fine to have a business name registered for potential use rather than active use. A niche case, yes.

Calahonda52

OP: re your long post at 4 above, that is an accounting/banking issue as opposed to tax problem.
As for opening bank accounts, they will look to you personally.

schmooschmoo

Calahonda52 wrote: »

OP: re your long post at 4 above, that is an accounting/banking issue as opposed to tax problem.

I don't understand the need for that clarification? It was an explicit digression stated in that very post:

schmooschmoo wrote:

...apologies for digressing massively but the question was asked.

As it was you who asked:

Calahonda52 wrote:

why can't you just add its numbers, when you have some, to your own sole trader figures

I thought it was polite to answer, while stating I was aware it was going off-topic. Anyway, I'm going off topic again. The issue's been solved and I'm genuinely appreciative of your earlier help, thanks.