Tax bill of 56k?

Yurple

Hi,

I want to register a business name and start doing work for people to earn money.

I currently rent a room in an apartment and I asked permission of the owner if i can use the address that i have to fill out on the online registration form.

He got very upset and does not allow it because he will have to pay a tax bill of 56 000 euro? Its 20% of the value of the place because as resident first time buyer there was no tax on it ?

This means i cannot register a business name until i buy a house?

drunkmonkey

That makes no sense.

Fill in the form, register your name and address and start going. You don't need anybody's permission besides the CRO.

Yurple

Thats what i thought!

So if i register the business name and address (where im RENTING at the moment) they cannot send the owner a massive bill because of me ?

Will the address be posted anywhere in public ??

srsly78

You don't automatically have to pay rates just because you register a business at an address.

Bombe

No it does not work that way...your friend is confused....:rolleyes:

Yurple

srsly78 wrote: »

You don't automatically have to pay rates just because you register a business at an address.

Thank you for the reply!

The owner said:

"you can use another address just if your a first time buyer you can get no transaction tax if it's a residential property and not a business. That's why I can't do it unless I have it for 10 years"

I'm so confused !!

I'm a photographer, and I don't have a retail outlet or such (work freelance for the most part, so moving around a fair bit, and most portraits etc. are done in customer's own homes using portable studio equipment).


Shane Maguire Photography was registered with the CRO with my home address. Just because that's the address I used to talk to the CRO, doesn't make it a place of business.

EKRIUQ

So if i register the business name and address (where im RENTING at the moment) they cannot send the owner a massive bill because of me ?

O yes they can!

The owner probably bought on a urban renewal scheme and got a tax break for 10 years and one of the conditions is that the property must remain a residential property. By registering a business at the address the revenue will want all the tax back and the €56,000 is probably about right.

If he bought it as a commercial property there would be no problem, plus you will need planing permission to run a business from there.

Dr.Zeus

If you have a reasonable plan for the business (making decent money, that is), you may need to use the services of an accountant. Perhaps use the offices of the accountant who set up the company as the registered address. That is what a lot of SME's do (my company's registered address is not where we trade from).
You CRO registered address and work address do not need to be the same.

smeharg

EKRIUQ wrote: »

O yes they can!

The owner probably bought on a urban renewal scheme and got a tax break for 10 years and one of the conditions is that the property must remain a residential property. By registering a business at the address the revenue will want all the tax back and the €56,000 is probably about right.

If he bought it as a commercial property there would be no problem, plus you will need planing permission to run a business from there.

Let's not get carried away here!


He's registering a business name at the address, that doesn't necessarily change the use of the premises from residential to commercial.


The fact is the apartment will remain a residential premises. Even if his room is doubling up as an office during the day Revenue will be unlikely to have any problem with it, provided the sole use of the premises, or any part of it, isn't business only.

Dr.Zeus wrote: »

...
Perhaps use the offices of the accountant who set up the company as the registered address. That is what a lot of SME's do (my company's registered address is not where we trade from).
You CRO registered address and work address do not need to be the same.

A limited company can have it's registered office at an address which is not it's place of business. However, a business name must be registered at the place of business. It can't be a care of address.

DubTony

The owner of the property has the right to decide if a business may be carried out there or not. As somebody who possibly bought on a tax deal, he is right to be concerned. A decent accountant should be able to tell you if there would be implications for the owner, but in fairness, unless he gives you the go ahead, you really don't have any options. It's his call.

The Apprentice

Ye dubTony's Right .. It really is his call at the end of the day.

1. The guys are right in saying theres no law in stating you cannot open a company whilst living there, his approval or not.
2. If you ran the business from that address ( Shooting etc) He WOULD be liable because indeed it is a change of use.. eek :S
3. Although its NOT being ran there, i would still be very concerned for him and you because of the possiblity of landing him with a €56k bill, and i would definitely talk to an accountant just to be sure !

The Apprentice

4. Also forgot to add it would give him grounds to evict you, this kind of thing sublet/run a business was in most rental contracts i have ever signed over the years !!

So this could actually make you homeless :S

Yurple

Thank you for all the replies.

Is it better to ring CRO to confirm this or revenue or an accounting firm ? I have to be 100%.

The Apprentice

Ring them all !!

sandin

My accountant works from home and my companies are all registered at his home address as are about a dozen other companies that he manages accounts for.

The only way the apartment could be compromised is if you opened a business that was open to the public such as shop or showroom or offices where public/customers can visit.


Also under rent a room scheme, he does not pay tax on the rent you pay and that does not affect any thing else either.

BigGrayKettle

In all fairness, if you are just using the address for the purposes of the RBN1, what on earth are the chances in this ultra-efficient country that the CRO would notify Revenue that a person (that is also different to the owner) has registered a business name.

The DSP and Revenue barely talk to each other, never mind the CRO and Revenue when it comes to business names.

At the same time, be careful of not annoying him by going against what he said, as he might find some grounds of eviction.

Nuttzz

Yurple wrote: »

Hi,

I want to register a business name and start doing work for people to earn money.

I currently rent a room in an apartment and I asked permission of the owner if i can use the address that i have to fill out on the online registration form.

He got very upset and does not allow it because he will have to pay a tax bill of 56 000 euro? Its 20% of the value of the place because as resident first time buyer there was no tax on it ?

This means i cannot register a business name until i buy a house?

he probably shouldnt be renting the room out at all and is worried about a stamp duty clawback or some sort of shared ownership scheme.

Look at getting a virtual office/mail drop address simpler in the long run if you move from place to place anyway

sandin

Nuttzz wrote: »

he probably shouldnt be renting the room out at all

you can earn €6000 from the rent a room scheme without any tax liabilty or registration whatsoever - I doubt if the op is being charged over €500 for a room in a house.