Registering as Sole Trader & Charging Vat HELP :)

heggie

Hi, I have a registered business name at the moment, and I want to set up as a sole trader, with the ability to charge VAT, how do I go about doing this? Thanks for any help.

Crumbs

http://www.revenue.ie/forms/formtr1.pdf

ButtermilkJack

Did the same myself back in March. Basically you're on the right track. You've registered your business name, now all you need to do is register for VAT purposes (and get your VAT number).

Form TR1 from the revenue.ie site is what you need to fill in. It's pretty straight forward. Takes about 10-15 days so remember this if you need it by a certain date.

http://www.revenue.ie/forms/formtr1.pdf

After that you just add VAT to all your invoices (make sure you quote yuor VAT number on each invoice) and then sort out the accounts when needs be. You'll need to fill out a VAT3 form every two months but that takes about 30 seconds! No worries there.

Good luck with whatever it is you've decided to do!!

SouperComputer

when you apply for a VAT no, can you pick a date to enforce it?

I would like to start teh new year with a VAT number and would like to avoid the accounting mularky to swiching to VAT before then.

ButtermilkJack

Yes, as far as I know you can. You just fill in a box that says something like "start date". The VAT system works on a bi-monthly basis anyway so it would probably be beneficial to start Jan-Feb if that's when you intend to kick-off!

Download the form using the link above and have a look at the various fields. It will give you an idea.

heggie

thanks guys, I have the tr1 form. So i guess all thats stopping me right now is a bank account is it difficult to get a bank account for business purposes? Should I just get a seperate 'personal' account and use that, or does it need to be business specific, and is there any requirements from the banks point of view? thanks again.

Binka

hi heggie,
you can still send in the tr1 without any bank details. Just put "TBA" in the bank details section. if you want to set up a business account the bank will ask to see the business name registration certificate. Alternatively, as a sole trader you can carry on trading with your personal account. It makes no difference to the Revenue.

heggie

thats great thanks, i think i'll just get a 2nd personal account, thanks for the info.

ButtermilkJack

I would go and get the 2nd account. I did, and it makes things a hell of a lot easier. Especially with online banking. You can see exactly whats going on without having to trawl through personal transactions first.

Murdock101

Hi,
Would i be right in saying that i have to register a company name using core.ie before i can setup as a sole trader?? Thanks for your help

Axwell

Holy thread revivals :eek:..you should have just started a new thread.

You dont have to register on core to register a business name you just send in the relevant paper work and not use core at all. Core is just an online tool to login and get forms and see a full record of your details etc. You can apply online for a business name at www.cro.ie and just send it in along with payment and your registered and good to go.

Murdock101

Hi Axwell,

Do i need to register a company name before i complete a TR1 form or can i complete TR1 now and associate a company name later.

Thanks for your help

Axwell

pm sent

Sposs

You need to register the company first before you can register for VAT as they'll look for your company registration number.

thecleverone

Sole Trader = Business
Limited Co = Company

When looking for advice about registering a sole trader, and you call it a company, you're bound to get conflicting advice as some people are referring to registering a company and others to registering a business.

As a sole trader, you don't need to provide your business registration number for vat registration purposes but the do ask what business name you'll be trading under. You will not be able to provide them with a business name unless you've registered it with CRO, as it is illegal to trade under any names prior to registration, so technically yes, you'll need to register the business name, or have the application for the business name in with CRO in the very least.

To register a business name (for a sole trader) , you fill out an RBN1 form which can be downloaded from http://www.cro.ie/ena/cro_forms_tt.aspx The cost will be just €20 (if filed electronically). Just note that although electronic submissions are done online, you still need to print off the application and post same to CRO. Also, just so you're prepared, its currently taking approx 4 weeks for CRO to register business names at the moment.

In order to register as a sole trader for tax purposes, you will need to fill out a TR1 form which can be downloaded here: http://www.revenue.ie/en/tax/vat/forms/formtr1.pdf

I would also recommend this as some good reading for someone starting out in business: http://www.revenue.ie/en/tax/it/leaflets/it48.pdf

pontovic

Hello everyone,

I'm in a situation where I want to register a business asap for invoicing purposes, but I still havent come up with that 'killer name'. If needs be, can I register multiple names to the same business or change a name when the new name comes to me?

I will register the business name under my own name first, but then I will want to change it later on.

Thanks

lecheile

pontovic wrote: »

Hello everyone,

I'm in a situation where I want to register a business asap for invoicing purposes, but I still havent come up with that 'killer name'. If needs be, can I register multiple names to the same business or change a name when the new name comes to me?

I will register the business name under my own name first, but then I will want to change it later on.

Thanks

Hi pontovic - yes you can register multiple business names as long as you pay your fee to CRO (€40 / €20 online) and the name is not already in use.

celtictigermrk2

Is there any obligation to actually start trading, or any obligation in regards to regular or annual returns/paperwork, if you sign up for a business name but don't get around to starting the business immediately?

lecheile

celtictigermrk2 wrote: »

Is there any obligation to actually start trading, or any obligation in regards to regular or annual returns/paperwork, if you sign up for a business name but don't get around to starting the business immediately?

your obligation is that you make a personal tax return each year - each business name will be linked to you PPS number. You will make a personal return anyway, whether there has been any activity on one of the particular business (assuming that you have set up as sole trader rather than Ltd. CO.)

celtictigermrk2

Yep, intention is to set up as sole trader.

So if I understand you correctly, I don't trade I need to file any further documentation other than what I'm already filing (i.e. I don't need to explicitly say to the revenue that yes I have a registered business name, but no I've never used it).

Correct?

lecheile

celtictigermrk2 wrote: »

Yep, intention is to set up as sole trader.

So if I understand you correctly, I don't trade I need to file any further documentation other than what I'm already filing (i.e. I don't need to explicitly say to the revenue that yes I have a registered business name, but no I've never used it).

Correct?

that's correct celtictiger - have a look here

http://www.revenue.ie/en/tax/it/leaflets/it10.html#section1

for more information on filing onligations for a sole trader.

pontovic

lecheile, Thanks for the response.

How long does it actually take to process a business name registration (sole trader)? I completed the form online, printed it, and posted it to the CRO.

lecheile

pontovic wrote: »

lecheile, Thanks for the response.

How long does it actually take to process a business name registration (sole trader)? I completed the form online, printed it, and posted it to the CRO.

normally about a week to 10 days. I received one yesterday that I registered online at the start of the previous week. Check out here http://www.cro.ie/search/ to see if the name has been processed which will mean that the paperwork is on the way.

hit_it_strong

I'm set up as a partnership and have had to pay VAT on a number of invoices so far (printing, branding, etc.)

I need to register for VAT now but I'm wondering if I can claim the VAT back for the last few months before I was registered?

Also, is it true the VAT returns are now every 6 months instead of 2 months?

topogina1977

thecleverone wrote: »

Sole Trader = Business
Limited Co = Company

When looking for advice about registering a sole trader, and you call it a company, you're bound to get conflicting advice as some people are referring to registering a company and others to registering a business.

As a sole trader, you don't need to provide your business registration number for vat registration purposes but the do ask what business name you'll be trading under. You will not be able to provide them with a business name unless you've registered it with CRO, as it is illegal to trade under any names prior to registration, so technically yes, you'll need to register the business name, or have the application for the business name in with CRO in the very least.

To register a business name (for a sole trader) , you fill out an RBN1 form which can be downloaded from http://www.cro.ie/ena/cro_forms_tt.aspx The cost will be just €20 (if filed electronically). Just note that although electronic submissions are done online, you still need to print off the application and post same to CRO. Also, just so you're prepared, its currently taking approx 4 weeks for CRO to register business names at the moment.

In order to register as a sole trader for tax purposes, you will need to fill out a TR1 form which can be downloaded here: http://www.revenue.ie/en/tax/vat/forms/formtr1.pdf

I would also recommend this as some good reading for someone starting out in business: http://www.revenue.ie/en/tax/it/leaflets/it48.pdf

Hi,

I was wondering if I have to register as a business and make my customers pay VAT even if I am just selling online on my site? I set up my site just to take advantage of a promo which is going to end in January 2009 and I will probably drop it then as Im not making any money out of it. Is it illegal not to get my customers to pay any VAT and for me to pay tax on it?

Thanks

petestan

hit_it_strong wrote: »

I'm set up as a partnership and have had to pay VAT on a number of invoices so far (printing, branding, etc.)

I need to register for VAT now but I'm wondering if I can claim the VAT back for the last few months before I was registered?

Also, is it true the VAT returns are now every 6 months instead of 2 months?

Good question. I'm wondering the same (about reclaiming for the last few months).

Fairly sure VAT returns are still every 2 months though. I think after a while you don't have to file as frequently, but initially you do.

tombull82

As Far as I can find out, you can only claim for VAT when you are liable to claim, i.e Once you are registered. I can't find any info regarding claiming for before being registered.:(

As for Returns , SME's can opt for 4 monthly and 6 monthly instead of the 2 monthly.

With effect from July 2007, for smaller businesses, the
frequency of filing VAT returns, currently six per year, is
reduced:
For businesses with a yearly liability of €3,000 or less, the
option of filing returns on a half-yearly basis will be
available,
For businesses with a yearly liability between €3,001 and
€14,000, the option of filing returns every four months will
be available.

tombull82

correction, just found it, sadly its bad news for startup costs..

Pre-Registration VAT Reclaims

While there is generally no provision for backdating VAT registration, you may claim a credit for the VAT content of stock for resale held at the beginning of the two-monthly taxable period for which you first registered. That is, if you register for VAT on the 10th of February, you may reclaim credit for stock held on or purchased from the 1st day of the preceeding month, January-February being a single tax period. However you are not entitled to a vat credit for capital goods i.e. plant & machinery, buildings, vehicles, fixtures, fittings etc., held at the time of registration.

petestan

I see. Thanks Tom.

MOH

topogina1977 wrote: »

Hi,

I was wondering if I have to register as a business and make my customers pay VAT even if I am just selling online on my site? I set up my site just to take advantage of a promo which is going to end in January 2009 and I will probably drop it then as Im not making any money out of it. Is it illegal not to get my customers to pay any VAT and for me to pay tax on it?

Thanks

If you're going to hit the VAT threshold (turnover of 75k for goods, half that for services) then yes, you need to register for VAT.

If you're not going to hit that figure, then it's up to you.

Not sure if you're asking do you need to register the business at all: if you're trading under anything other than your own name then you should register a business name.

daytrader1

I have done a landscaping job for someone,do I charge them 13% or 21%?