Tax confusion and reluctance to get an accountant

RayKayJay · 17-05-2021 4:24pm #1

I'm currently setting up as a sole trader (earn at least 24K a year). My husband is employed (75K) and also is going to be doing some freelance stuff on the side.
We recently moved back to Ireland, and the tax system has my head spinning! I really have no idea what I am doing
We are also hoping to buy a home in the next year, so I'm anxious to get the finances in order.
I think we will benefit from joint assessment, but as I have no idea what I'm doing when it comes to the Irish tax system, and my husband will be doing some freelance on top of his job for the first time, would it be recommended that we go to an accountant for some advice, even just for this first year? Our situation just doesn't seem straightforward.
I'm very stubborn and wanted to do the taxes myself, but I'm afraid I'll totally screw up and either under/over paying taxes. But I'm also afraid to spend money on an accountant as we are saving so hard to get out of our current living situation.
Any advice would be greatly appreciated!

Jerry Attrick · 21-05-2021 5:19pm

RayKayJay wrote: »

I'm currently setting up as a sole trader (earn at least 24K a year). My husband is employed (75K) and also is going to be doing some freelance stuff on the side.

We recently moved back to Ireland, and the tax system has my head spinning! I really have no idea what I am doing

We are also hoping to buy a home in the next year, so I'm anxious to get the finances in order.

I think we will benefit from joint assessment, but as I have no idea what I'm doing when it comes to the Irish tax system, and my husband will be doing some freelance on top of his job for the first time, would it be recommended that we go to an accountant for some advice, even just for this first year? Our situation just doesn't seem straightforward.

I'm very stubborn and wanted to do the taxes myself, but I'm afraid I'll totally screw up and either under/over paying taxes. But I'm also afraid to spend money on an accountant as we are saving so hard to get out of our current living situation. Any advice would be greatly appreciated!

It's much easier to answer specific questions rather than attempt to give an overview of the whole Irish PAYE/Income Tax system.

So my advice would be (i) to avail of the excellent and extensive information available on both the Citizens Information and the Revenue Commissioners' websites and, (ii) after having done so, use Boards to ask any specific questions that may occur to you.

Why not start here: https://www.citizensinformation.ie/en/money_and_tax/tax/income_tax/

And the two of you might consider registering for Revenue's online services too: https://www.ros.ie/myaccount-web/home.html

As to employing an accountant, it's difficult to advise either way without knowing how good your bookkeeping skills are and how complex your tax affairs are likely to be, but why not have a look at the Form 11 (which is the form that you'll have to file annually as a self-employed person), and see if you think that you'd be comfortable completing it.

CIARAN_BOYLE · 21-05-2021 7:33pm

Get an accountant.

Most banks are requiring certification of income by an accountant to count freelance or sole trade income for a mortgage application.

La la lopsy · 22-05-2021 9:59am

CIARAN_BOYLE wrote: »

Get an accountant.

Most banks are requiring certification of income by an accountant to count freelance or sole trade income for a mortgage application.

They’ll accept a form 11 submitted by self employed. Just went through two mortgage applications with BoI and PTSB and neither had a problem that I do tax returns and not Sn accountant

Mrs OBumble · 22-05-2021 10:10am

With numbers that large, get an accountant for at least a year or two.

They will likely pay for themselves in terms of knowing what you can claim.

Do the bookkeeping parts yourself and use the time to learn all you can.

Will Yam · 28-05-2021 9:00am

RayKayJay wrote: »

I'm currently setting up as a sole trader (earn at least 24K a year). My husband is employed (75K) and also is going to be doing some freelance stuff on the side.
We recently moved back to Ireland, and the tax system has my head spinning! I really have no idea what I am doing
We are also hoping to buy a home in the next year, so I'm anxious to get the finances in order.
I think we will benefit from joint assessment, but as I have no idea what I'm doing when it comes to the Irish tax system, and my husband will be doing some freelance on top of his job for the first time, would it be recommended that we go to an accountant for some advice, even just for this first year? Our situation just doesn't seem straightforward.
I'm very stubborn and wanted to do the taxes myself, but I'm afraid I'll totally screw up and either under/over paying taxes. But I'm also afraid to spend money on an accountant as we are saving so hard to get out of our current living situation.
Any advice would be greatly appreciated!

You summed it up when you said you havent a clue what you are doing!!

Yes, you could look at revenue website and do a form 11 but in my opinion you would probably spend so much time figuring it out that you’d have no time left for your business. And you would - probably - get it wrong.

For example - would you realise that you could claim business related expenses incurred in the 3 years before you started trading?

Or, are you obliged to register for vat? No, if your turnover is 24,000. But might it be in your interests to opt to register for vat, even if you dont have to. But how can you decide?

I would strongly advise getting advice now. You might be able to cut a good deal with an accountant if you agree to give him a schedule of all sales, expenses very clearly laid out on a spreadsheet so s/he can spend the time doing the tax return instead of rummaging through a shoe box of crumpled receipts.

Tax confusion and reluctance to get an accountant

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