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sole trader on BTWE allowance

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  • 05-08-2015 8:40pm
    #1
    mcneil
    Banned (with Prison Access) Posts: 332 ✭✭


    I set up my business in October last year and while my main business has been slow, my sideline has been flying. I've been earning between 500-1000 euro a week in a handyman business and have a few questions.

    I've been informed I'm tax free in my earnings for 2 years while on this back to work enterprise allowance. I always thought it was tax free just on my BTWEA that I get paid into my bank from the dole office every week.

    If I am liable for income tax, can I leave it until the 2nd year of trading before I file my tax return. Reason being I want to save costs for paying an accountant.

    If I do pay income tax, is there any other hidden taxes I've to pay. Will i be liable for PAYE and if so, how does that work.


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    #2
    Tigger
    Closed Accounts Posts: 16,705 ✭✭✭✭Tigger


    you're income tax free (not prsi or usc) for two years up to €40 k of income
    but get an accountant to set you up so that you don't miss organising this benifit efficiently


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    #3
    mcneil
    Banned (with Prison Access) Posts: 332 ✭✭mcneil


    Tigger wrote: »
    you're income tax free (not prsi or usc) for two years up to €40 k of income
    but get an accountant to set you up so that you don't miss organising this benifit efficiently

    Am I income tax free if its not part of the main businesses I set up through this scheme. I've put it down on my application form that if my business is slow, I can do other work for income.


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    #4
    Mrs OBumble
    Registered Users Posts: 25,967 ✭✭✭✭Mrs OBumble


    Tigger wrote: »
    you're income tax free (not prsi or usc) for two years up to €40 k of income
    but get an accountant to set you up so that you don't miss organising this benifit efficiently

    If you're supplying a service or selling remotely, then the VAT registration thresholds are somewhat low ... 35k in one case. And that's a threshold for revenue, not profit.

    If your turnover is getting anywhere near this, then an accountant is essential anyways.

    ref: http://www.revenue.ie/en/tax/vat/guide/registration.html#section2


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