how to be self-employed?

O

Onway

Guest
My husband is about to set off into self-employment!What does he need to do as regards tax and leaving his current job?Also,can anyone explain the V.A.T system to me?Does he have to register?What can we claim back on?etc..........
 
There is no easy answer to this question and you should probably seek independent, professional advice on the tax and related business matters. These links might be of interest to get started:

[broken link removed]


[broken link removed]

When leaving his current job he will need to get a P45 and make sure that he has P60s for years gone by - at the very least 2003. I don't think that a crash course in VAT will suffice if VAT is relevant to the new business venture. You will most likely need an accountant for that.
 
Presumably your husband is leaving about to leave employment before the end of this year.

First thing is to maximise his tax free extraction from the Company.

Second easy as pie to register for SE tax.

1. STR form if he believes income is going to be below €127k; Otherwise TR1 form. Revenue help line will assist. Return to his own tax office.
2. Register for VAT if he feels that he is going into a business where he ought to charge VAT; but he does not need to register if his turnover wont exceed €25k to the end of the year or a full year. Some businesses (eg mortgage adviser ..is not a vattable business) many are if they are services or product.
3. If all his clients are VAT registered, it means they can claim the VAT back and whether he registers or not wont bother them. If they are individuals like houseowners, then he will be charging more and having to account for VAT.

Hope this is helpful
 
Does he need to lodge all the payments he gets into a specific bank account - like a business account?Someone told him to pay it all into an account and then take a wage from it each week - and that this can lessen tax liability.Does that make sense to anyone?
 
You must log in or register to reply here.
Back
Top