Director and receiver of STEA

manonhire

Hi there,

Background: I'm the director of a new company. Founded in November 2013 but only starting to really trade now. The company was set up before I knew about the STEA. I have since been in with my local Social Welfare Office and spoken to them. They have been very helpful and decided to 'ignore' the fact that the company has been officially in existence since November 2013 and have recommended me for the STEA. It will end in August but the money is important for me and my family as it's the only consistent 'income' I'm receiving at the moment.

The issue: The company did a small job for a client in January, which we sent out a VAT invoice for. We've since received full payment (inc. VAT). Our VAT3 returns are due in the next couple of days. For the sake of not compromising me getting the STEA, can I 'hold back' on the VAT received from my client and include it in the next return? I'm concerned that if Revenue see the dates for when we were paid they will take me off the STEA.

Thanks,
MH.

Peterdalkey

DO pay your VAT on time!!

VAT section of Revenue have no interest in your STEA income, which in any event will be lumped in with any other earnings for tax etc when the time comes.

manonhire

Thanks Peter, I have a feeling that's probably the best way to go. In terms of the Social Welfare payments / STEA - I assume that's all taxable income and should be accounted for at the end of year?

Peterdalkey

Yip, 2013 returns due OCT 2014 + prelim for 2014

manonhire

Thanks!