Registering as a Sole Trader?

Anvarion

Registered User
Messages
4
I'm setting up as a sole trader from January of this year, 2021, having been unemployed for most of 2020. I see various mentions online of "registering as a Sole Trader", which seem to indicate that I can do so via the Revenue myAccount or ROS. However, I can't find any clear way to do this in either.

Further reading seems to indicate that there isn't really a single register-as-Sole-Trader form or anything, and that instead I "just" need to pay income tax, and some others, by October 31st. Some other things seem to indicate that that doesn't need to happen until October 31st 2022. I looked at registering for income tax, but that seemed to require that between my wife and myself, I should have the larger income. I won't know that for some time, and it seems pretty unlikely for a few years yet.

So:

1) Is there a form somewhere that I am missing that I can fill in and say "I am a sole trader now", or

2) By when do I need to actually pay the various taxes if that's what I need to do instead?

I'll almost certainly get an accountant to sort the actual details out for me at such time as I need to pay, but I'd like to know when, and if I'm missing anything on the actual registration business.
 

Jayom75

Registered User
Messages
190
Other than any professional or regulatory requirements specific to the profession or trade being carried out, there is no specific “Sole Trader” registration requirement or facility. It’s a legal term used to distinguish sole traders from partnerships and companies. Sole traders have unlimited liability.

Of course you’ll have to register with Revenue for Income Tax/VAT purposes etc.

Once you commence trading solo, you’re free to announce to the world that “I’m a sole trader now!”

You can register a business name with the registry of business names.

Go to the Accountant for the tax advice, as things are more interesting now with warehousing and the various schemes available to employers. But usually you’ll have zero income tax liability in the first year of trading. You get hit twice the following year (October) for the prior year tax and that year’s preliminary tax. VAT falls due usually every two months if VAT registered. Again, speak to the expert on this.
 

Anvarion

Registered User
Messages
4
Of course you’ll have to register with Revenue for Income Tax/VAT purposes etc.

Grand. How do I do that, for income specifically? The form on the revenue sites says something like "confirm you are the higher earner", and won't go any further without that. First, I don't know how much I'll earn, and second, it's very unlikely I'll earn more than my wife this or next year.
 

Jayom75

Registered User
Messages
190
Grand. How do I do that, for income specifically? The form on the revenue sites says something like "confirm you are the higher earner", and won't go any further without that. First, I don't know how much I'll earn, and second, it's very unlikely I'll earn more than my wife this or next year.
Outside my comfort zone on that one. Go to the Accountant. Get yourself set up on the Revenue Online System (ROS).
 

relax carry on

Registered User
Messages
98
Grand. How do I do that, for income specifically? The form on the revenue sites says something like "confirm you are the higher earner", and won't go any further without that. First, I don't know how much I'll earn, and second, it's very unlikely I'll earn more than my wife this or next year.

That sounds like you are looking at a form for registering for Joint assessment not registering for a new taxhead.

This should get you where you need to go. Little bit of reading required.

 
Top