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New business set up - we both work FT

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  • 27-04-2015 1:43pm
    #1
    Hooked
    Registered Users Posts: 2,806 ✭✭✭


    Hi all

    My wife and I both work full time but have regular 9-5, Mon-Fri jobs that share common interests. We have the opportunity to do extra work from home (each of us) at no extra cost to us (we have the office, hardware, software, etc). We have no kids, etc... and are turning away a lot of extra income. Its all "computer" based work, so VAT registration is not really essential as we'll have little in the way of expenses.

    We obviously want to be able to invoice and declare all our extra income.

    We are very recently married, so I'm just wondering what the best way to go about this is? We'd like one website, one company name, etc... but just wondering the best (and least painful) way to set us up.

    Should one of us go sole trader, via the CRO, and do a tax return each year. Should the other take the tax credits?

    Any advice would really help

    Thanks a million


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    #2
    JMR
    Registered Users Posts: 633 ✭✭✭JMR


    Hooked wrote: »
    Its all "computer" based work, so VAT registration is not really essential as we'll have little in the way of expenses.

    The requirement to register for VAT is based upon likely income (37.5K for services) and not the level of expenses incurred.

    http://www.revenue.ie/en/tax/vat/guide/registration.html

    I would advise speaking to an accountant on the most tax efficient way to conduct the business


  • Options
    #3
    Pat2
    Registered Users Posts: 11 ✭Pat2


    As JMR stated Vat registration is based on your expected Turnover and not what expenses you may incur

    There are a number of items to consider before deciding on what platform to trade under, such as;

    - Current Salaries (Sole trade for one of you may be an option depending on what each of you earn)
    - Will you require the funds for personal use now (if not a ltd company may be an option)
    - Partnership - Not a fan of these but the option is there which you can split the profits for tax purposes

    No one can give you an accurate answer to your query without knowing a lot more of your personal and financial details so I would recommend meeting an accountant to go through your various options as the information required is to sensitive to put on boards.

    Best of luck


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