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sole trader/small business

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  • 16-07-2005 9:28pm
    #1
    john kavanagh
    Closed Accounts Posts: 1,639 ✭✭✭


    so any tax tips for small business owners to keep that profit number as small as possible?? what should we be claiming back for?


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    #2
    kluivert
    Registered Users Posts: 2,399 ✭✭✭kluivert


    More details needed than that

    You can claim back expenses that are for the purpose of the trade.

    If you have money to spend invest in a S.23 property and let it, thats if you can find one that is of a reasonable price these days.


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    #3
    ck1
    Registered Users Posts: 123 ✭✭ck1


    Finding a good accountant is a good start. Here are a few things to note ...

    Capital items purchased are written off over an 8 year period.
    Entertainment is only deductible if for staff only
    Travel and Subsistance must be wholly for the business
    Contribute to pensions, one of the best ways to extract cash from businesses.
    When purchasing vehicles, consider Lease Hire and Lease purchses - compare both


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    #4
    gubby
    Registered Users Posts: 1,010 ✭✭✭gubby


    excuse me ? what is S.23 property??? :confused:


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    #5
    A Dub in Glasgo
    Registered Users Posts: 17,202 ✭✭✭✭A Dub in Glasgo


    http://www.myhome.ie/news/news_show.asp?p=1&id=1496


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    #6
    20LEgend
    Closed Accounts Posts: 87 ✭✭20LEgend


    Manipulation of stock is the easiest way for a sole trader to adjust the bottom line figure.
    Just make sure your Gross Profit margin doesnt look ridiculus.
    Also you could choose to not capitalise certain expenses in the year i.e. a computer, fax machine etc. Instead you can write them off to repairs and receive the full benfit in the current year.

    Hope that helps


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    #7
    ck1
    Registered Users Posts: 123 ✭✭ck1


    Without going into it too much a S.23 Property is property whereby the Capital allowances are allowed to be offset against rental income you receive. The amount of Capital Allowance is deemed at outset and the majority have been between 85% and 99% of the purchase price. E.g. If the purchase price is €100,000 and the S.23 Releif is 99% then you get €99,000 to offset against your rent (from any Irish Rental Property). Say your annual rent is €20,000 after repairs and such, if you had no capital Allowances then you would pay €9,400 in tax (if you were a higher rate tax payer). You could use part of your allowance to write off your liability. If you had the same rent year in year out then your allowance would last you practically five years.

    Other properties/developments that have similar allowances are Section 50 (Student Accommodation), Section 48 (Holiday Homes), Rural Renewal, Urban Renewal, etc.


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