C2 Tax??

newmills

Hi,

I started as a self employed contractor in construction in jan 2007. When it comes to the october deadline this year will i have to pay the tax for 2007 and the ten months for 2008 or just the 2007 tax. Can the purchase of my van, tools, workwear etc be deducted from my taxable income?
Cheers.

dooloo

You should have paid preliminary tax in Oct-07. In Oct-08, you are liable for the remainder of your income tax for 2007 along with your preliminary tax for 2008, being either 100% of the '07 liability or 90% of the estimated liability for '08.

Any capital items such a van are written off via capital allowances over a period of 8 years at 12.5% per year.

Do you have an accountant?

kluivert

This is a very common question for sub contractors.

Employ the services of an accountant local to you to assist you.

You need to get a set of accountd perpared in order to calculate your profits, for which income tax is based on.

Come October 2008, you will be liable for Income tax for profits earned in the the year end 2007. In addition to this you must pay preliminary tax on account for the next year (the year end 2008) equal to 100% of the tax paid for the year end 2007.

Only business related expenses can be used against your sales.

Meaning the Breakfast roll in the garage down the road is for you and not the business, therefore is not allowed.

Check out this site, loads of info for what you can and can not claim.

http://www.revenue.ie/

Click of "for Businesses" on the left, scroll down to starting a business and click on "Income Tax".

Bren1609

You should hire an accountant.

Legend100

It is essential that you hire an accountant as you may not know that there are major changes about to happen for sub contractors come September if you are vat registered.