Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Help Starting out???

Options
  • 04-02-2006 3:40pm
    #1
    jayo2004
    Registered Users Posts: 359 ✭✭


    I know zip about tax but if you go as a sole trader you dont have to add vat to prices if you dont want to ( is this correct)??


    I have been getting different advice about setting up on your own and am actually more confused from asking different people as everyone has something else to say (friends etc).Some people say get an accountant to do the books other people are saying your mad if you do cause its simple and you can do it yourself (excel spreadsheets etc...) as long as you keep track of everything?? I have already registered as a sole trader.

    Is there any sole traders doing the books themselves and if so could you please let me know what is really involved or should I get an accountant??


    Just one more question is there a certain ammount of money you can make without been taxed or is everything taxed. So basically if you only make €20,000 per year is that taxable??

    Sorry if some of the questions are stupid but as i said i know zip about all this


Comments

  • Options
    #2
    jayok
    Registered Users Posts: 1,906 ✭✭✭jayok


    Hello Jay,

    All your VAT questions here - http://www.revenue.ie/leaflets/it49.pdf

    But basically VAT registration is linked to your turnover.

    If you supply services and have turnover of greater than €25,500 then you register for VAT

    If you supply goods and have turnover of greater than €51,000 then you register for VAT

    If your turnover is less than the above limits you can "elect" to register for VAT but is it not compulsary. Bear in mind, once registered for VAT you must charge VAT for your services/good unless they are VAT exempt (e.g. training or food)

    As for your day books which are something like:

    Sales Book, Cheque Debits Journal, Purchase Invoices Book and Cash Receipts Book as very simply to keep. In most cases Excel will be more than sufficient to keep your accounts.

    I would probably speak to and accountant if you have doubts just to make sure you are doing the right thing, but I wouldn't "get" an accountant to keep your day books.

    As for tax limits with a sole-trader your normal tax limit and credits apply only (i.e. the first 28,000 at 20%, the rest at 42%, PRSI). There is no special exemptions here. Although you can deduct certain expenses.


Advertisement