Sole trader tax, current account and advertisement question

Kai123

Hello,

I currently work full-time in retail and plan on doing PC/Laptop repair and servicing as a side job.

I do not require funding, and will not be registering a business name. Regarding the business current account, would it be acceptable to lodge money from the current account to the business account? I would be taking payments in cash and cheques.

Regarding tax. I am not pursuing this full on, just to increase my income a bit. Apart from the tax on the money I make, are there other charges? I would hate to have a nasty surprise if I have to pay anything then the tax. As an example, if I only make 2k a year, I only have to worry about the tax and nothing else?

Advertisement. I will be using my name and not registering a business name. How would I name a website or e-mail? Would "myname PC-Repair" be acceptable or would it count as a business name?

Any advice on any of these topics would be greatly appreciated.

Kai.

Kai123

1) Will registering with Revenue incur any costs apart from the tax on the money I make?

2) Would transferring money from my current account to a business account be viable?

3) If using my name, how do I advertise myself online if I want to buy a domain name?

Gloomtastic!

I can answer your bank account transfer question.

As a sole trader your bank account is a 'trading as' account. It's in both your name and your registered business name so you can use any money in it, or transfer money to it, as you see fit. You can lodge cheques in your name and your business name.

For tax purposes you and your business are one and the same, the profits are yours but so are the losses!

Kai123

I get it. If im working full-time and lodging money from the side job, I would have to keep it separate for taxation reasons. Would be alot easier for me then to open up another current account and just use that for business.

Thanks Gloomtastic

Gloomtastic!

Kai123 wrote: »

I get it. If im working full-time and lodging money from the side job, I would have to keep it separate for taxation reasons. Would be alot easier for me then to open up another current account and just use that for business.

Thanks Gloomtastic

Not really. You're taxed on your business accounts - profit or loss. A bank account is irrelevant to tax.

I use my business account for loads of personal things it doesn't affect my tax. It could be the other way round. It does affect your cash flow though so you need to keep enough in there to pay your bills as they fall due.

But for taxation/business purposes you need to register as a sole trader and use a trading name ie The IT man, if you want. Then once your registered you can open a business account in that name. You won't be able to unless you're registered.

As a sole trader your profits are considered your salary so you only pay tax once.

Kai123

Registered online for the business name, will register with revenue once things start going. As long as I keep records I cant do anything wrong.

Dont know why but im nervous about sending the CRO form. Always wanted to do this but only now have the balls to.

Kai.