Annual returns for new sole trader

thomasjad

Hi,

I was wondering if someone could offer advice. I want to register as a sole trader with the CRO. However I understand that estimated returns need to be submitted for the current year by October 31st. I still have a lot of prep work to do so would I be better off waiting until November to register to avoid the return straight away and put it off until next year? Or is there any time period after which they won't look for this return?

StupidLikeAFox

Generally your tax returns for the current year don't have to be submitted until october of the following year - i.e. 2016 returns are submitted in October 2017.

However, as you are starting mid way through the year, you get a pass for next year too. Basically if you register today, you submit 18 months worth of returns in October 2018. Im not sure whether this is rolled into one return or you submit two separate returns at once.

I can not stress enough how valuable it is to spend an hour with an accountant and getting it right from day one. Go over your responsibilities, what records you need to keep etc. Get some system in place (excel or an accounting package), setup a separate bank account etc and start doing it right from scratch - its a nightmare to try and come back to two years after the fact and try make sense of your figures

TripleAce

StupidLikeAFox wrote: »

Generally your tax returns for the current year don't have to be submitted until october of the following year - i.e. 2016 returns are submitted in October 2017.

However, as you are starting mid way through the year, you get a pass for next year too. Basically if you register today, you submit 18 months worth of returns in October 2018. Im not sure whether this is rolled into one return or you submit two separate returns at once

Is this only for Sol Traders or also for new LTD companies? I started a LTD company in October 2015 and my understanding is that I have to submit the annual return before 31st October of this year....am I missing something?

TripleAce

TripleAce wrote: »

Is this only for Sol Traders or also for new LTD companies? I started a LTD company in October 2015 and my understanding is that I have to submit the annual return before 31st October of this year....am I missing something?

Just wonder if somebody know this? I started my company in October 2015 (Ltd) so I believe I wonder if I need to do the annual return this year before end of October or can wait until next year? Speaking with my accountant I need to do it this year, but after reading this post I was wondering if that is really true....thanks for advising

StupidLikeAFox

Howdy, apologies for missing this earlier.

I had a look back through my emails and found this from my accountant. Our business was set up in June 2013, its a partnership so may be different to Ltd companies:

We contacted the income tax section of revenue commissioners today in relation to the due date for submission of the 2013 Form 1 Tax return.

They advised that this return for 2013 is not due for submission until 31st October 2015 (same due date as 2014 return).

I also have a follow up email from about a month later as the return was still showing as over due on ROS. I emailed ROS directly about this and they updated the due date in the system for me. In hindsight, I am not sure if my accountant requested that the due date be deferred or its just a standard practice.

mrawkward

TripleAce wrote: »

Just wonder if somebody know this? I started my company in October 2015 (Ltd) so I believe I wonder if I need to do the annual return this year before end of October or can wait until next year? Speaking with my accountant I need to do it this year, but after reading this post I was wondering if that is really true....thanks for advising

You seem to be mixing up company returns and personal taxation. Sole traders and partnerships only have income tax returns, and file at the end of October, for the year ending the previous December. Your accountant is talking about the company returns as a director you should be paid under the paye system.

dbran

thomasjad wrote: »

Hi,

I was wondering if someone could offer advice. I want to register as a sole trader with the CRO. However I understand that estimated returns need to be submitted for the current year by October 31st. I still have a lot of prep work to do so would I be better off waiting until November to register to avoid the return straight away and put it off until next year? Or is there any time period after which they won't look for this return?

Hi

It does not matter what time of the year you register as a sole trader. If you register any time in the year you are subject to self assessment in that year.

However you will not be getting involved in submitting a tax return this October 2016 because that return will be referring to the previous tax year ie 2015.

Because of the way the commencement rules work, it could happen that you would not be able to file a correct return in October because by the time you have completed your first year of accounts, the fling deadline would have already passed.

So, for the first year, you get an extra 12 months to file your return with the revenue. However as this will mean that when it comes to do the second year you will basically have three years tax to pay it is usually advisable that you pay them something so that you do not get a shock when it comes to eventually sorting everything out.

So if you are registering as a sole trader today, your first payment should be made on October 2017 (at least as an estimate) and every subsequent October. You then have until October 2018 to file your first two tax returns.

dbran