Can I be a Sole Trader and Employed?

SweetPea6

Hi-
I have a full time job at the moment but I'm trying to start up as a sole trader. Does anyone know what the implications are and any big pros/cons? I realise there are a number of tax issues but is it going to be a total nightmare and has anyone tried it?

Thanks!

Victor

Perfectly normal. You just have to make a tax return at the end of year.

Of course, VAT and employee deduction have to be paid bi-monthly.

JCYSHOW

SweetPea6 wrote: »

Hi-
I have a full time job at the moment but I'm trying to start up as a sole trader. Does anyone know what the implications are and any big pros/cons? I realise there are a number of tax issues but is it going to be a total nightmare and has anyone tried it?

Thanks!

In short yes you can be a sole trader and employee at the same time and plenty of people have tried it.

You will need to register your business with Revenue and file an income tax return called a form 11 each year.

Things to consider are;
If you need, or should, register for VAT - the type of business and your level of turnover for the year will determine this.

Is there anything in your employment contract to prevent you from doing this? will you be in competition with your employeer etc.

Will you need employees?
Can you run the business from home or do you need an office/warehouse etc

Possible local county council rates issue if you run it from home?!!

Depending on the business you are in are there any regulations you need to comply with? do you need any special insurance?

There are lots of things to consider and I could fill the page with general considerations for any business but to give a more meaningful reply I would need to know what business you intend opening and a rough idea of your plans - is it only a part time business or will it grow into something bigger?

karlkarlson

Possible local county council rates issue if you run it from home?!!

JCYSHOW, would you mind giving some more specific information on this aspect? What's the criteria for having to pay rates?

Victor

JCYSHOW wrote: »

Possible local county council rates issue if you run it from home?!!

Generally no. An accountant working for a firm, who also does some work on their own account from home generally wouldn't be required to pay rates. Someone running a doctor's surgery or a shop with visitors and deliveries, etc. would.

Note that running a business from an apartment may have additional problems.

karlkarlson

Thanks Victor. We'll be looking to run a home office and store stock from home but not sell from there i.e. like a shop.

As for apartments, are you referring to issues of insurance or the landlord contract?

Rfusik

I would like to ask a question in this thread as some of you might know the answer as well as it can be beneficial for the author of this thread
I have been employed for 3+ years now and i am starting up my business myself as a sole trader. My employer pays PRSI class A for me so i wonder if i would have problems with getting Job Seeker Allowance if i made redundant.
I would like to add that as a sole trader i will be making as little as 100 quid a month ( maybe even less ) at the begging

Victor

karlkarlson wrote: »

As for apartments, are you referring to issues of insurance or the landlord contract?

Both. The lease probably prohibits commercial activity (the visitors and deliveries end of things) and storing stock may compromise the block insurance and you may have problems having it on your own insurance.

JCYSHOW

karlkarlson wrote: »

JCYSHOW, would you mind giving some more specific information on this aspect? What's the criteria for having to pay rates?

Victor wrote: »

Generally no. An accountant working for a firm, who also does some work on their own account from home generally wouldn't be required to pay rates. Someone running a doctor's surgery or a shop with visitors and deliveries, etc. would.

Note that running a business from an apartment may have additional problems.

I put in the point RE rates just to make SweetPea6 aware that it could affect him/her. As you mentioned above it all depends on the type of business they intend to run as a sole trader - we dont know from the details in the first post.

As you say if they are simply working from the kitchen table on a computer doing some ad hoc consultancy or the like then I wouldn't expect there to be any rates issue. However if you have a full-on business from an office in the house where you have meetings etc then I would say the council would look to charge rates.

It will really depend on the type of business and on the view your local council takes i would think!

karlkarlson

If the council don't know about you is it wise to check with them? Or will they come across you on paperwork eventually?

My wife will be running an online clothing store from a house so home office and storage of stock (at least for the first year of business). Only online selling through post so no visitors or customers at the house.

Any thoughts on if our situation would mean paying rates?