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New business - when to commence keeping books

  • 08-11-2007 12:19am
    #1
    boa-constrictor
    Closed Accounts Posts: 109 ✭✭


    I am helping a friend to do the books for her home based internet business. She had a few small transactions in 2006 (< €700) but the business really only commenced trading in earnest in 2007. I would like to start the books from 1/1/07 as I'm told that her pre-start up expenses can be offset against profits over the initial three years so would like it to be 07, 08, 09 rather than 06, 07, 08 (as she didn't make any profit in 06). Does anyone know if this would irk the Revenue Commissioners or is it even worth worrying about.

    Also, does anyone know if trading losses can be carried over to subsequent years ie if you make a loss of €5k in 07 and a profit of say €10k in 08, would you be liable for tax on all of the €10k. The business is a sole trader.


Comments

  • #2
    Coala
    Registered Users Posts: 129 ✭✭Coala


    You can carry forward loss and reduce next available trading profit, so .. for the year 2007 profit will be 10K-5K=5K


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