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Basic tax question - sole tradership

  • 05-10-2018 09:48PM
    #1
    stainluss
    Registered Users, Registered Users 2 Posts: 869 ✭✭✭


    I am a PAYE worker earning some income from an unincorporated business I have on the side (I guess sole-tradership? Its a revenue generating website).

    If I make €2k in a month revenue in revenue from my sole-tradership but spend for example €1k that month on COGS + hosting.

    Do I pay income tax on the €2k or €1k (revenue - costs)?


Comments

  • #2
    Steve
    Registered Users, Registered Users 2 Posts: 22,575 ✭✭✭✭Steve


    You pay tax on the 1k profit only.

    Provided you can account for the genuine costs.


  • #3
    rovertom
    Banned (with Prison Access) Posts: 148 ✭✭rovertom


    Steve wrote: »
    You pay tax on the 1k profit only.

    Provided you can account for the genuine costs.

    Tax on the profit however be sure that costs you include are fully deductible and not for example costs of equipment such as laptop for example which I believe are depreciated over a term.


  • #4
    stainluss
    Registered Users, Registered Users 2 Posts: 869 ✭✭✭stainluss


    Fantastic - thank you both.
    Thankfully my costs are billed/presented digitally so the records should be easy to keep.


  • #5
    Mrs OBumble
    Registered Users, Registered Users 2 Posts: 27,030 ✭✭✭✭Mrs OBumble


    Keep an eye on the VAT threshold: it's based on revenue not profit and if you're likely to exceed it then you need to manage for that before it happens.

    IMHO with that sort of profit you should be using a tax accountant for advice at least.


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