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Setting up as a Sole Trader - Questions

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  • 29-07-2015 12:36pm
    #1
    Blue Steel
    Registered Users Posts: 64 ✭✭


    Looking at the sole trader form, I see a section where you enter your activity.

    * can you be a sole trader if your only business is funds investment, ie: your only source of income would be dividends, interests, ...
    I'm asking because it seems very passive but I'd argue that being a landlord is a bit like owning REITs shares.

    * what if there are several activities, do you need to setup separate entities or can you cover everything under the one sole trader and then what do you enter as being your activity?
    realistic examples would be: investment and/or web design and/or being a landlord.

    Cheers!


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    #2
    pedroeibar1
    Closed Accounts Posts: 5,108 ✭✭✭pedroeibar1


    Read here


  • Options
    #3
    Blue Steel
    Registered Users Posts: 64 ✭✭Blue Steel


    pedroeibar1 wrote: »
    Read here


    I'm not sure this answered my questions though: it shows differences between Sole Trader V Limited Company.


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    #4
    dbran
    Registered Users Posts: 2,094 ✭✭✭dbran


    Dividends, interest income would not generally be regarded as trading income but they would normally need to be returned on your personal tax return 31 October.

    Similarly rental income is another type of income. Unless you were running a guesthouse or a B&B it would not be regarded as trading income. You would still have to return it on your personal tax return every October and there are lots of other issues with rental income which I wont go into here. You may also need to register with the revenue for self assessment.

    If you are buying or selling the investments on a regular basis this could sometimes be argued to be trading income but more often then not the income would be subject to capital gains tax.

    If you do have trading income and you want to set up as a sole trader. Then you just set up once with the revenue for self assessment. You will need to have the profit or losses of any separate trades split out in order to complete the tax return properly.

    dbran


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