Setting up as Sole-trader time-frame ?

BreadBoard

What forms are required to fill out in terms of becoming a sole-trader & how long does this usually take ?

is_that_so

CRO - online www.cro.ie You should get the cert inside a couple of weeks.

VAT and Tax registration 5 days to three weeks. Download the TR1 form from the revenue website www.revenue.ie and send it in.

Bank - immediate but do other stuff first.
That's it really.

BreadBoard

Thank you very much

dahamsta

is_that_so wrote:

CRO - online www.cro.ie You should get the cert inside a couple of weeks.

FYI, you don't need anything from the CRO unless you want to trade as something other than your name (in which case you need an RBN (Registered Business Name)).

VAT and Tax registration 5 days to three weeks. Download the TR1 form from the revenue website www.revenue.ie and send it in.

You don't need to register for VAT either unless you're trading over a certain amount. Having been advised to do so prematurely myself, I'd advise NOT doing so unless/until you have to. But that's just me, YMMV.

AFAIK you don't have to register for tax either. If you've been employed, you have a record with the Revenue already.

adam

BreadBoard

Thanks Adam.

Another 2 questions;

1. I don't really understand this question on the TR1 Form;

17. To what date will annual accounts be made up?

Should that be approx 1 year from the business start date?

2. I'm moving to a premises and they require (or are looking for) me to be registered for VAT. Surely I don't have to registered for VAT if I'm only starting out?

antoinolachtnai

No you don't have to be VAT registered, but realistically, they probably assume that if you are full time and renting a premises, you must be planning to turn over more than the limit. Remember, VAT is a turnover tax, not a profit tax.

dahamsta

BreadBoard wrote:

Should that be approx 1 year from the business start date?

I'd imagine so, but I'm not an accountant. I'd suggest asking the Revenue, they can be very helpful.

2. I'm moving to a premises and they require (or are looking for) me to be registered for VAT. Surely I don't have to registered for VAT if I'm only starting out?

No, you don't. Of course if they require it contractually, you could be in trouble. Ask them.

Antoin, the thresholds are certainly a bit out of date so it's less likely to be a long-term thing, but there's plenty of people out there working from home and turning over less than the thresholds for at least a year of trading. BreadBoard needs premises, but in general assuming a premises requirement is a bit of an assumption imho.

adam

BreadBoard

So should I register for VAT anyway?

antoinolachtnai

it depends whether registering for VAT is in your interest. If your customers are mostly businesses, then it probably is. If they aren't, it probably isn't.

But you really have to figure out your cash flows.

dahamsta

Antoin's probably right, but I would add that businesses can be surprisingly accepting of non-VAT registered traders, once you're clear with them when negotiating that you're not currently registering for VAT. If you have a premises requirement though, your turnover's going to have to be higher and you're going to need to be registering for VAT sooner rather than later anyway; so again, Antoin's probably right.

He's also right about cash flows, but you need to do that whether or which.

adam

BreadBoard

Hi guys,

I sent off the TR1 form there about 10 days ago. I sent it to my local revenue office (Plaza, Tallaght). Do you think they will take long to process it? I might ring them just to make they got it ok.

conical

They seem to be fairly efficient from what I remember. I think I brought mine in in person on a Thursday and got a letter back on Tuesday. Sure give them a call if it eases your mind.

I'd agree with the above as well; if your clients are businesses they will be claiming the VAT back anyway, so you may as well register from the start. If they are end-user/individuals then not imposing VAT will give you an edge in terms of price for the first few months of your business at least.

-C

paulocon

conical,


do you need to have TR1 form processed before you can start trading?

conical

paulocon wrote:

conical,

do you need to have TR1 form processed before you can start trading?

No (afaik).
There is a question on the TR1 asking when did business commence (in my case I had started a month or so earlier).

You are able to claim so pre-trading expenses (for costs up to 3 yrs before the date of commencement ) so if you have bought a laptop say or office equipment, in preparation for starting-up, that can be claimed for over the coming years.

-C

paulocon

Conical,

thanks for clearing that up.

BizAngel

conical wrote:

No (afaik).
There is a question on the TR1 asking when did business commence (in my case I had started a month or so earlier).

You are able to claim so pre-trading expenses (for costs up to 3 yrs before the date of commencement ) so if you have bought a laptop say or office equipment, in preparation for starting-up, that can be claimed for over the coming years.

-C

Does the 3 year limit apply to VAT deductions as well as income tax deductions?

conical

BizAngel wrote:

Does the 3 year limit apply to VAT deductions as well as income tax deductions?

I'm not sure I understand your question correctly, but if your asking whether you can claim the VAT back from purchases made pre-trading the answer is no
You can only claim VAT back for purchases within the period that you have been collecting VAT.
That said if you take the earlier example of a laptop, you can claim capital allowances for the full -VAT inclusive- amount (eg: €1000), whereas if you had claimed the VAT back you could only write off the VAT exclusive amount (eg ~€800).

All of this should be qualified by saying I'm not an accountant by any stretch of the imagination!!

-C

BreadBoard

I'm registered

Just rang them there and asked was I registered and they said I was since the 13th. I asked would I hear/receive anything in the post etc like a form or cert they just said I'll hear nothing till next year when I've to fill my tax return.

Well all down hill now.