new to self employed

I

imageworks

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hi!
ok lost my job in feb and been on Jobseekers. Have just been offered a new position but they told me I need to sort my own taxes and that i invoice them weekly. This is only going to be a 2 day a week position! Where do I start?

I have spoken to social and revenue but didnt get much info. They gave me a form and told me to set up as self employed! that it! I know nothing about this stuff and will not be earning alot so cant really afford an accountant! Help!!

Im in cork if anyone knows anyone that can help!
 
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hi imageworks,

My wife was in a similar position last year. She was told to fill out the Tr1 form to register as self employed. Then in the following October (2011 for you), Revenue told her to fill out a Form 12 for the previous tax year (given the three different sources of income) to file her tax return indicating her income from both self employed work and job seekers benefit during that year.

Also, so long as you are not working self employed for more than three days a week you'll you'll be able to claim job seekers benefit for the three or more days a week that you are not working (remember its a 6 day working week for JSB).

Remember, your tax return is a year away but you should try and hold back a few quid for tax so you don't get a shock at the end. In your tax return you can write off lots of stuff to lower your taxable income. keep receipts for everything.

You should pop down to the citizens information centre, they usually have a monthly free advice evening from professionals like solicitors and accountants - you need an accountant to give you a little steer but its very doable.

good luck.
 
remember that just calling yourself self employed does not make you self employed

lots of info on this on revenue website, cant link as I am less than 15 posts
 
Hi Image , the callling yourself Self employed is not an issue for you--- It's the employers problem so do not concern yourself with it

I would really recommend talking to an accountant later to discuss tax returns and payment deadlines but for the moment you should just fill out the Tr1 - check the VAT guide on the revenue website -- depending on your annual income , you may need to register or depending on your circumstances it might be more advantageous to register.
 
Whether a person is employed or self-employed is a matter of fact and not something the employer can arbitrarily throw out there at someone just so save them having to pay holiday pay / PRSI etc. There is a statement of practice on this issued via Revenue and Social Welfare. If an individual does not meet the criteria for self-employment then they are an employee and the employer cannot renage on their obligations.

www.welfare.ie/EN/.../code-of-practice-on-employment-status[1].pdf
 
Imageworks,
Self Assessment:
Self employed people have to submit an annual return of Income (Form 11) to the Collector General each year by 31 October and pay the balance of tax for the prior year and preliminary tax for the current year by this date. As you are only starting this year your first return is due by 31 October 2012. Depending on your level of income in the current year you may have a preliminary tax liability in October 2010.
In order to register as a self employed person the form is Form TR1. You should complete this form and send it to your local Tax Office. There are a number of taxes on this form which I have outlined below:
Income Tax:
Tick the box to register for Income Tax and provide details of the nature of the business.
Value Added Tax (VAT):
Everyone in business needs to consider VAT. Depending on the nature of the services / products that you provide / sell and the annual turnover you will have a specific VAT criteria. In your case your annual turnover will be below the €37,500 limit, you do not have to register.
PAYE/PRSI:
If you intend to employ staff you need to register as an employer. Again I assume that this is not relevant in your case.
Relevant Contracts Tax (RCT):
If you intend to engage subcontractors you need to register for RCT. Again I assume that this is not relevant in your case.
When the Revenue has processed your registration form they will notify you of your income tax number, it will be the same as your PPS Number. This will be your only interaction with Revenue for the moment.
End of year accounts:
You need to keep a record of all your income and expenses so it is better to open a separate business account. At the end of the first year you can calculate your income from your sales invoices and your expenses from your purchase invoices and bank payments.
This information is then used to calculate your profit for the year and this together with your other sources of income is put on the Form 11 Tax return.
Hope this clarifies it a little any other questions give me a shout.
 
thanks so much everyone

tanks guys, yep il sort that form and get onto citizens advice to see if there are free evenings! thanks for the help and info to all of u. greatly appreciated! :D
 
Hi Imageworks
If you are considered "self employed" as opposed to "employed" you may be eligible to receive the "short time enterprise allowance" which will allow you to keep your full job seekers benefit (up to €196 per week). You should contact your local community enterprise office and see if you would qualify. I was made redundant in February and have set up my own business and I have to say the help i received from the local communty enterprise office was invaluable.
 
taxation question to first thread.

Hi There,

I know this post is 3 months old but I was wondering, the situation stated in the first thread does the employer also have to pay a tax even though you are paying your own taxes?

Many Thanks,
 
In most cases no, but there are exceptions, construction for one in the absence of a c2. they wouldnt be paying a tax though , just withholding it & passing it on to revenue
 
A small bit of advice for you. approx 25% of your income will be owed to the tax man in about a years time, so stash it away in a separate account for that unbearable day, remember they will come and collect regardless when its due, You will always see new businesses start up and in 2 years all gone, all due to the unforeseen tax bill. Remember if you earn you will pay tax.
 
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