Registration for Tax for Sole Trader and Commercial Van. Joint Assessment.

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Deauville

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My daughter and son in law bought an old house rural and he has been spending his time refurbishing it and not working outside the home.
Now they are doing some homework regarding him becoming a Sole Trader.
They estimate he would only be earning between 5 and 10k per annum.

My daughter is PAYE and the only current earner. Will remain highest earner for foreseeable future.

They have tried to e-register for tax for him to become a sole trader and will need a tax registration number to register a small commercial van.

However, they came up against a question. 'Confirm are you the assessed person or are you separately assessed'.
They say they can't proceed without answering this question.

However, they want to remain jointly assessed and she is and will remain highest earner.

Anyone had any experience of this and how to best proceed ?

It's the commercial registration of a van that is the first issue for them in progressing their plan.
 
My husband and I are in a similar position. I am the higher earner and PAYE, he's a sole trader.
We're jointly assessed with him as the assessed person. We have it set up with the higher rate band applied to me and we split the tax credits equally. I have to ring revenue to get the tax credits split the way we want each year.
 
Deauville said:
They have tried to e-register for tax for him to become a sole trader and will need a tax registration number to register a small commercial van.
Click to expand...
Deauville said:
It's the commercial registration of a van that is the first issue for them in progressing their plan.
Click to expand...
This item seems high on their agenda for some reason.

VAT back on purchase or lease cost? VAT back on fuel?

Does the work he will undertake require a van or could they use their own car and claim mileage back for sole trader activity, after insuring it properly for work purposes of course?
 
to register a new commercial vehicle, you do not need to provide any tax information. ie if i buy a new commercial vehicle from a garage i just give them my name and address and they register the commercial vehicle.

to buy a second hand one you just fill out the change of ownership on the log book and send it to the vehicle registration department.

you can also tax a new commercial vehicle online at the private rate.

to tax a commerical vehicle at the €333 rate there are are a few requirements, 1 being getting a weight docket, and another signing a goods only delcaration that the vehicle will only be used for business related activity. if there is any personal use of the vehicle it must be taxed at the private rate based on engine size. there are other requirements also.

for a small van, 1.5L diesel engine, is €514 tax per year at the private rate. which is only €181 more expensive than the commercial rate.
 
Thanks a million for the very helpful replies.

The work he will engage in will be gardening.
A small second hand van will suffice for tools and equipment.

It sounds like what they hope to do is achievable.

A call to revenue seems like a next stage.
Thank you for your input.
 
One more question.
If he is the assessed person, aside from credits, can my daughter still hang on to the higher Standard Rate Cut Off Point ?
ie. 53k
 
Back again.

It seems there is a deadline of end of March in applicable tax year for assessed person to be changed.
So, to become the assessed person for this year, the deadline has passed.

This sound correct ?

Just fishing for info as my daughter didn’t get to talk to revenue yet. She ran out of time holding to talk to someone.
Will try again though.
 
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Deauville said:
It seems there is a deadline of end of March in applicable tax year for assessed person to be changed.
Click to expand...
Yes:

Calendar of key dates for tax professionals

Calendar of key filing and payment dates
www.revenue.ie www.revenue.ie

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2025-08-30 14 09 14.png
 
Deauville said:
It seems there is a deadline of end of March in applicable tax year for assessed person to be changed.
So, to become the assessed person for this year, the deadline has passed.
Click to expand...
This doesn't make sense. People register for self assessment all year around.

The deadline is for joint/separate assessment.

The key task here is to register for self assessment, assuming this is actually deemed necessary.

They should consider getting proper professional advice on all this as there are a range of issues to consider.
 
Yes - there seems to be some confusion here about changing the assessed spouse of a married couple/civil partnership (deadline for 2025 was 31st March 2025) versus registering for self-assessment.
 
Thanks Guys,
I’ll see how call to revenue works out.
On the e-registration it asks is the applicant the assesses person or are you separately assessed.
Must answer to proceed.
Not assessed person.
Not separately assessed.
Can’t change to assessed after March 31st.

Thanks for all the help. Will leave you in peace.
 
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