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Tax and the self employed

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  • 29-01-2006 9:05pm
    #1
    jellycopter
    Closed Accounts Posts: 92 ✭✭


    I'm considering becoming self employed in the very near future but need some advice realting to paying my tax. Can anyone point me in the right direction by providing a link?

    Cheers!


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    #2
    Kinetic^
    Closed Accounts Posts: 13,249 ✭✭✭✭Kinetic^


    jellycopter wrote:
    I'm considering becoming self employed in the very near future but need some advice realting to paying my tax. Can anyone point me in the right direction by providing a link?

    Cheers!

    Hi Jellycopter,

    There's a few things you'll have to consider.

    First of all, are you going to operate as a sole trader or a limited company? If you go down either route, are you going to operate under a seperate business name?

    Are you going to be registering for VAT & PAYE/PRSI? You'll also have to register for corporation tax if you decide to go limited.

    There are many different options for you but you'll have to decide on the above in order to get the right advice.

    Cheers,
    Keyser.


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    #3
    jellycopter
    Closed Accounts Posts: 92 ✭✭jellycopter


    Cheers for the prompt response!

    I've been doing a few bits and bobs of graphic design for people and I've been gauranteed steady work from one individual (mostly on-site) for the next 18 months. I want to do this all legit, but know absolute zip when it comes to tax and so on. I'll hardly be earning millions, but getting stung is the last thing I want to happen. So I guess I'll be working "freelance" for the next year and a half at least and really want to be sure that everything I do is above board. If anyone can tell me the best route to go down, I'd really appreciate it.

    On another note, my gf and I have been house hunting and because my parents have been brilliant and offered to pay our deposit, I just need to find the right place and sort out the mortgage. What sorta documentation am I likely to get asked for when applying? p60? Proof of earnings?


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    #4
    Savman
    Closed Accounts Posts: 8,323 ✭✭✭Savman


    go sole trader, less hassle ;)


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    #5
    jimmycrackcorm
    Registered Users Posts: 14,336 ✭✭✭✭jimmycrackcorm


    If you are doing work for only one person then the revenue will argue that you should be classified as an employee.

    Make sure you sort your VAT out and especially only take VAT if you are likely to pass the threshold.


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    #6
    Reyman
    Registered Users Posts: 1,297 ✭✭✭Reyman


    I started out as a Sole Trader but moved on to my own company after a year or two. The costs are higher but it gives your operation more legitimacy and your business card will probably have more credibility.

    You need to pay an Accountant to do your books for the first year or so (approx E3,000). After that you can figure out how to do it yourself and save the money. An annual audit is not necessary if you're running a small business.
    There is a downside of a fair bit of paperwork with your company but You'll get the hang of that fairly quickly.

    As JC says you should not register for VAT unless you can easily charge VAT to your customers (ie they can reclaim it ). Once your revenue exceeds E25K, you have to register for VAT


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