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contracting question

  • 19-07-2005 1:53pm
    #1
    Registered Users, Registered Users 2 Posts: 1,488 ✭✭✭


    Just wondering if there are any contractors around, that knows the story with tax and an expenses accounts. I am going to start contracting soon, and i am wondering what you can put down as an expense (eg lunch, travel ???) and also is your tax done yearly or monthly ??

    Any one know

    plus any other advise would be greatful


Comments

  • Registered Users, Registered Users 2 Posts: 2,399 ✭✭✭kluivert


    Hey there,

    Any questions you have your more than welcome to ask but firstly i advise you to do your homework when it come to tax. You may encounter four types of taxes and you should get some basic knowledge of each to ensure you have a successful business.

    Four Taxes: VAT, Paye (If you have employees or you pay yourself a wage), RCT (Relevant Contractors Tax), Income Tax.

    1. What you can claim for in regards to expenses - Anything that is only for the purpose of the trade. In preparing accounts I see alot of construction businesses claiming ESB as an expense for their home. How is this for the purpose of the trade. Its not and will increase your income tax if you include it in your accounts. You can approportion a certain amount to the business though.

    Just think, is this expense for the trade or for person use.

    2. Income tax is done on a yearly basis. The deadline is 31st October 200X
    Meaning your accountant will prepare accounts for 2004 which will make the basis for your 2004 Income Tax return which is paid on or before 31st October 2005.

    If you have an other questions send them on, more than happy to help.


  • Registered Users, Registered Users 2 Posts: 1,488 ✭✭✭AdrianII


    so work a mobile phone bill, wook tools, lunch, travel to work count as expenses.

    do you have any good websites for info in regard to these vat, paye form


  • Registered Users, Registered Users 2 Posts: 538 ✭✭✭mjquinno


    How about setting yourself up as a sole trader i looked at oasis.gov but coudnt find any relevent information.

    Who do i talk to ? what do i do ? where do i go?

    Thanks.
    M


  • Registered Users, Registered Users 2 Posts: 1,080 ✭✭✭Crumbs


    www.revenue.ie,
    www.askaboutmoney.com and
    www.basis.ie
    are your friends.

    Adrian, read up on "travel and subsistence expenses" - your lunch and travel expenses may not be claimable.

    MJ, search for form TR1 on the revenue website. That's the form you'll need in order to register for tax as a sole trader.


  • Registered Users, Registered Users 2 Posts: 538 ✭✭✭mjquinno


    Cheers crumbs...

    exactly what i was looking for.

    M


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  • Registered Users, Registered Users 2 Posts: 296 ✭✭JP Mulvano


    Not quite sure what type of contracting you're thinking of doing but you might want to check out

    CXC

    They're a management company and you pay them a percentage of your weekly/monthly salary. 2 things though:

    1. Don't be afriad to haglle with them on the percentage they charge I find as your rate goes up and you spend more time with them they tend to have a little more leeway.

    2. If you're making more than 35K a year its probably going to be cheaper to hire and accountant and setup a company. Actually the company part is relatively painless its more having an accountant check over your books at the end of the year. Otherwise you'll get dry humper by the tax man the following year.


  • Registered Users, Registered Users 2 Posts: 2,399 ✭✭✭kluivert


    Lads

    Before starting out on your own please read up on taxes and which items qualify as an expense... Like before think, Is this expensive for the purpose of the trade... Like Lunch think about it whos that for?? You or the Business.
    Again Travelling to Work, Whos that for?? You or the Business.

    I have seen alot of people start there own business without knowing the financial side of it. And the tax man has shut them down because they didnt pay VAT, RCT, Income Tax, Paye & Prsi.

    Its easy and if you need help do go see an Accountant, Accountants nowadays do more than write up the books, accountants provide a great source of Managament advise.

    Starting your own business can be very rewarding. Know your stuff though from every angle.


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