Registering business name

P

patk100

Guest
Hi All,

My background is that I am employed with a company earning c30k. In addition I have been doing alot of freelance web work and in the coming year estimate that I will earn c10k from this. I have permission from my employer to do freelance contract work.

I really don't think that dealing with the C.R.O is high on my list of needs but I want to use a name that's not my own and need to register for VAT (a requirement of my clients)

My plan is to register as a business name with unlimited liability - as I am not dealing with a physical product - does this make sense if I am willing to take the risk that my business name will not be protected and perhaps if all goes well convert myself to a proper bo company in 12months or so.

Also on the revenue side, as I will still be a sole trader in their opinion how would this affect my tax position and what would be my accounting needs - I am really lost on this question after delving into the CRO and revenue sites.

I do hope someone can give me some tips!
 
Hi,

If you want to register a business name then go to the CRO website and fill out an RBN1, print off the signature page and enclose a cheque for €20.

You will need to download a TR1 from the revenue website and register for Income Tax and VAT. Effectively you will be a sole trader with unlimited liability as you say. From the Revenue point of view you will need to complete annual Income Tax returns and bi-monthly VAT returns. Also it might be helpful if you engage the services of an accountant to complete your accounts & Income Tax return. You could do the VAT yourself if you only have a few sales invoices and no purchase invoices.

Jockey
 
Very helpful Jockey- thanks!
Bi-monthly Vat returns caught my attention - what format does this take ?
 
Hi Patk,

Basically any one year is broken up into 6 periods e.g

1. Jan/Feb 07 - Return due 19th March 07
2. Mar/Apr 07 - Return due 19th May 07
3. May/Jun 07 - Return due 19th July 07
4. July/Aug 07 - Return due 19th Sept 07
5. Sept/Oct 07 - Return due 19th Nov 07
6. Nov/Dec 07 - Return due 19th Jan 08

You can also pay a monthly direct debit to the revenue instead of filling out bi monthly VAT returns and then at the end of your accounting period you can complete an annual VAT return, but if you elect to this make sure your direct debits cover your expected liability because if at the end of the year if theres a shortfall and this is more then 20% of your annual liability you will be hit witn interest!

Best of luck with your business anyhow.


Jockey
 
Jockey said:
Hi Patk,


You can also pay a monthly direct debit to the revenue instead of filling out bi monthly VAT returns and then at the end of your accounting period you can complete an annual VAT return, but if you elect to this make sure your direct debits cover your expected liability because if at the end of the year if theres a shortfall and this is more then 20% of your annual liability you will be hit witn interest!
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AFAIK, you need to be vat registered for at least a year before you can opt for the annual vat return.
 
if you are only going to earn €10k from the freelance work i wouldnt bother registering for (or charging) VAT, just declare the 10k as additional income at the end of the year (be sure to keep enough to pay the tax too!)
 
I really don't think that dealing with the C.R.O is high on my list of needs but I want to use a name that's not my own and need to register for VAT (a requirement of my clients)
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Unfortunately if you are planning on trading under any name other than your own personal name, it is a legal requirement to register this with CRO. As mentioned before, you can download the RBN form from www.cro.ie, and it will cost you €20. I would recommend looking into this. Its a very quick and painless procedure and inevitable if you are not trading under your own name.
 
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..........and need to register for VAT (a requirement of my clients)
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Can not understand this requirement. Can you clarify their reasoning behind this before registering for VAT and adding 21% and extra beaurocracy to your pricing model?
 
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