Income tax for first year of business as sole trader

[esperanza2]

Can anyone tell me whether in my first year as a sole trader I pay taxes on my profits? My profits will amount to ca. €10,000.

I know this used to be the case a few years ago, but I'm not sure if there has been any changes to conditions for the self-employed in the budget yesterday.

 

[Joe_90]

There is relief for companies but a sole trader is taxed on profits from the date of commencement to the 31 December in the first year.

 

[esperanza2]

There is relief for companies but a sole trader is taxed on profits from the date of commencement to the 31 December in the first year.

Thanks! They must have changed the rules so, I could swear it was different a few years ago.

 

[M K Brazil]

The relief you may be thinking of was that you did not have to submit your first Return until you were submitting your second Return - in other words you could deal with the first two years together. However apart from this administration concession - I've never seen anything that would exempt the actual tax payable.

 

[agnieszka]

I think you are exempt from paying income tax for 2 years, and new budget extended this to 3 years afaik.

 

[mandelbrot]

I think you are exempt from paying income tax for 2 years, and new budget extended this to 3 years afaik.

I think you are referring to an exemption from Corporation Tax for new start-up companies ([broken link removed]).

This does not apply to sole traders / income tax.