Tax Back on expenses?

Z

ZumbaGirl

Registered User
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I started a business recently and to say it's struggling would be a huge understatement. I've put quite a bit of money into it so far (quite a bit for someone in my circumstances anyway) and I'm now wondering if I can claim any tax back on my business expenses. I've kept reciepts, of course.

Can I do this now or do I have to wait til the end of the year? Also, does anyone know how much you are likely to get? Maybe it's something like 5%, maybe even less, but even so I'm really struggling and any little bit would help.

Thanks to all who reply.
 
Assuming you are a sole trader any loss incurred can be offset against other income in the same year. So if you have paid tax on another source of income than you may get that back. If you have not paid tax then you can't get any back. Losses are carried forward against profits from the same trade.
 
Hi ZumbaGirl,
You really need to sit down with someone and talk through how taxes work in relation to running a business.
I really mean no offence but it's frightening that anyone who has already started a business could ask such a question.

You need to know if you are making a profit each week/month and without knowing your ongoing tax liability you can’t know if you are making money.
Please talk to an accountant or someone who runs a small business and submits their own tax return (and not someone who is fiddling their own taxes).
 
+1 to Purple comments

Zumbagirl, you need advise on your tax and accounting affairs, not quite sure where you got 5% from?

When you say "claim back tax on expenses", do you mean claiming back VAT, are registered for VAT?
 
+1 to Purple.

No offence to Zumba. Nobody gets everything right. People need to be a bit more clued in when going into business. The level of knowledge of people entering business is very low. It makes one question is it too easy to enter business in Ireland? Other countries have restrictions - In France you need the permision of the local Mayor. Surely the Revenue could do more to advice businesses - have a starter pack, have regular public meetings.
 
simplyjoe said:
+1 to Purple.

No offence to Zumba. Nobody gets everything right. People need to be a bit more clued in when going into business. The level of knowledge of people entering business is very low. It makes one question is it too easy to enter business in Ireland? Other countries have restrictions - In France you need the permision of the local Mayor. Surely the Revenue could do more to advice businesses - have a starter pack, have regular public meetings.
Click to expand...

Janey mac, what is it with you and Revenue today Joe, more audits, more penalties, public meetings, babysitting service for people starting in business!?

On that last point, the mission statement of Revenue is:
'To serve the community by fairly and efficiently collecting taxes and duties and implementing Customs controls.'

While you may be right in general that there should be more resources available to help people starting out, I don't see why it should be Revenue's job, do you?
 
+1 Purple

simplyjoe said:
In France you need the permision[sic] of the local Mayor. Surely the Revenue could do more to advice businesses - have a starter pack, have regular public meetings.
Click to expand...
Don't think that politicians or red tape would be beneficial to anyone - what if any business know how do they have?
However, of course a level of understanding of the processes involved would help. That said, I will commend the OP in having the gumption to have a go; first lesson to be learned however plan, plan, plan and plan again. As much as you were probably anxious to jump in feet first, as you are finding it can be costly and you really could do with some help in doing it right. I suggest contacting your local enterprise board they are itching to find and help people like you willing to have a go. But it is important to understand the basics and get yourself clued in on the basics, you may also benefit from some self-help books.
 
While you may be right in general that there should be more resources available to help people starting out, I don't see why it should be Revenue's job, do you?[/QUOTE]
The revenue is usually the first interaction that new business owners have with the state. It would be beneficial for the Revenue that new businesses would have some clue as to how business and in particular taxes work. My beef is not with the Revenue people that I meet and talk to regularly my beef is with the organisation of the Revenue. They are totally understaffed. There are not enough audits and the quality of the existing audits are poor due to pressure on staff to get them done and completed. It has led to a Greek like situation where self employed people still think they can choose how much tax to pay whereas PAYE workers are crippled picking up the resultant losses. The self assessment/audit system is not working.
 
There are a couple of leaflets which you may find useful to get you started.

Dept. of Social Protection's booklet:- "Toil and Trouble" a guide to self-employment.

Revenue's leaflet:- IT 48 "Starting in Business"
 
Thanks everyone for your replies.

Maybe I overstated when I said "running a business", All I have are a few Zumba classes in a local community centre.

I am registered as a sole trader with the Revenue. I know I have to pay tax on my earnings but am not actually sure about what the official process is.
 
Why don't you fill out your first year Revenue return, and let the experts there tell you what you need to monitor in terms of returns.
It looks to me like you need a bit of help with the books - you'll need a balance sheet, Profit and Loss Statement, details of purchases and sales and associated tax etc. before you even file a Revenue return. So, if you haven't started collecting this information, talk to you local Revenue official from the Dept of Finance - they can be really helpful (sometimes).
 
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