Setting up as Sole Trader whilst in PAYE Employment

Leftyflip

I've trawled through a fair few pages but couldn't see what I was looking for.

I'm looking to start up a web shop selling electronics and components for model makers, hobbyists, etc.

What I'm unclear on after my few hours of reading around is the tax situation.

I'll be working full time as a PAYE employee and using the webstore to create a side income with the hopes of eventually expanding.

I doubt I'll need to be VAT registered for a good while, so I'm not worried about that yet.

Mainly, I'm just confused about how I'd go about declaring earnings and paying tax, etc whilst I'm in this position.

Form 12? B1 with the CRO?

Thanks in advance for any help!

thehamo

Leftyflip wrote: »

I've trawled through a fair few pages but couldn't see what I was looking for.

I'm looking to start up a web shop selling electronics and components for model makers, hobbyists, etc.

What I'm unclear on after my few hours of reading around is the tax situation.

I'll be working full time as a PAYE employee and using the webstore to create a side income with the hopes of eventually expanding.

I doubt I'll need to be VAT registered for a good while, so I'm not worried about that yet.

Mainly, I'm just confused about how I'd go about declaring earnings and paying tax, etc whilst I'm in this position.

Form 12? B1 with the CRO?

Thanks in advance for any help!

My honest best advice is hire an accountant. Im in the same boat and had the same headache, but honestly, my accountant was just like, dont worry about it, ill take care of all that

MyTax Ireland

Leftyflip wrote: »

I've trawled through a fair few pages but couldn't see what I was looking for.

I'm looking to start up a web shop selling electronics and components for model makers, hobbyists, etc.

What I'm unclear on after my few hours of reading around is the tax situation.

I'll be working full time as a PAYE employee and using the webstore to create a side income with the hopes of eventually expanding.

I doubt I'll need to be VAT registered for a good while, so I'm not worried about that yet.

Mainly, I'm just confused about how I'd go about declaring earnings and paying tax, etc whilst I'm in this position.

Form 12? B1 with the CRO?

Thanks in advance for any help!

Hi,

I'd agree with the above post - a good accountant takes away a lot of the stress on the admin side.

You need to register as a sole trader (assuming thresholds are met) with Revenue and you'd be best off registering a business name with the CRO. Your accountant can do that and explain preliminary tax, key dates etc

Thanks,
MyTax

bravo

Hi,

I am both self-employed and PAYE for just over 2 years and took me white a while to get this sorted in my head.

You need to register as a sole trader for income tax (self-employed) with revenue. You then need to figure out whether you need to submit a Form 11 or Form 12. This link should clarify that (the bit about "a chargeable person"):https://www.citizensinformation.ie/en/money_and_tax/tax/income_tax/how_to_comply_with_your_tax_obligations.html

From experience - if you complete a Form 11 you will be doing it for the rest of your life, regardless of how much self-employed income you earn. My SE income dropped drastically last year and I wanted to switch to Form 12 - no way!

If you gor the Form 11 route I suspect all of your tax credits will most likely be used up in your PAYE employment so you will have no credit to go against any profit from the business. Your tax liability will be on your net income (self employed income less expenses solely for business purposes).

You would continue to pay your PAYE as normal and then before October of each year send in your Form 11 and tax payment (if any).

One tip - have a good look at Form 11 - it takes in all sources of income including any bank interest etc.

pinkypinky

Definitely get accountant. There's a threshold you can declare as side income profit (€5000?) without registering as a sole trader if you're just getting going. But there are downsides to that such as not being able to get business bank accounts.