if you registered as self employed when you started trading you will have to do a self assesed tax return this october . your accountant will want to see bank statements showing monies comming in and any payments going out for purpose of the business expences etc. otherwise he will want to see cheque payments stubbs or cash reciepts . you must have a sellection of records for your business by law .look at the revenue site for f.a.q on starting a new business.get it right from the start and it can make life alot easier as your business grows. you need an accountant and its never too late to start your records.IF REVENUE PICK YOU FOR AN AUDIT YOU COULD BE ASKED FOR BOOKS AND BANK STATEMENTS AND RECIEPTS FOR UP TO 6 YEARS PREVIOUS.KEEP EVERYTHINGGOOD LUCK !
I don't have an accountant, as I don't think the procedures are that complicated. Obviously, I keep all the paperwork and enter the amounts I receive each month and when I receive them on an Excel sheet.
I don't have a profit and loss account as such, as I don't charge VAT so I don't reclaim it either. Basically, the few thousand I make a month is my profit (I have other sources of income unrelated to my self-employed activity that pay my rent and bills - my business also requires little money anyhow) and I note down the amounts I receive, and keep the proof. Is this enough? What more would an accountant be able to do for me?
I don't have an accountant,
if you registered as self employed when you started trading you will have to do a self assesed tax return this october .
The OP states that self employment began last September (2006), so the first tax return, under revenue commencement rules is not due this October, but in October 2008, along with the 2007 return.
Eh, the threshold for VAT registration is €35K per annum. That few thousand a month you're making puts you over that threshold!
I think you need to speak to an accountant urgently.
Oh, that's great news! So, I won't have to pay taxes until October 2008?
Yes, but in October 2008 you will have to pay tax due for 2006, 2007 and preliminary tax for 2008, so you could be faced with a large tax bill. While October 2008 is the deadline it doesnt mean that you cant file the return sooner, or at least get your tax liability calculated so you can make some provisions for the tax due.
but most of the work I do is exempt from VAT which means I can't charge VAT. Where does that leave me?
Ok, I understand. How does one calculate tax liability? Is there an online calculator tool for this?
Have you checked with Revenue that you are clearly engaged in a VAT exempt activity? There are not many of these ( undertakers / carriage of persons - Taxi / travel agent are examples). Be mindful that ones customers being VAT exempt does not make you VAT exempt. Be absolutely certain that you are correct on this or you will have serious problems down the line. Again, a good accountant is well worth their fees (both VAT and tax deductible) and I must echo previous posters on this.
No, my business activity is not tax exempt but some of the jobs I do are.
No, my business activity is not tax exempt but some of the jobs I do are.
What exactly do you consider a tax exempt job?
Ok you definitely need to see an accountant. In brief I am getting the impresion that you may be dealing with VAT exempt companies such as non-Irish , export orientated businesses who may have VAT Section 13 A/B authorisations which basically mean that they do not pay Irish VAT. However the firms supplying them would be VAT registered but then get a copy of the customers 13A exemption certificate which entitles them to charge the customer without adding VAT. The supplier in this case must still be registered for VAT if over the VAT registration threshold just that for those particular jobs does not actually charge it. All other jobs where the customers do not have Section 13 exemptions must be charged VAT at the appropriate rate. It is the suppliers responsibility to charge VAT in all cases unles they get Revenue evidence that the customer is VAT exempt.........getting confused.......well thats what its like when you tread in the VAT minefield without clear appropriate professional advice. Revenue do not believe in the defence of " oh but I thought that ..."
Also bear in mind that certain services must be notified to Revenue by the customer where the total paid to the supplier exceeds €6,000 PA. This is called "Third Party Information" and indicates whether VAT was charged or not. If Revenue get one of these showing someone over the limit and no VAT registration it may result in enquiry from them.
A job where my work is published, such as journalism. I cannot charge my clients VAT for my articles, as this area is exempt from VAT.
Are you a journalist ? if so you might note note the following [broken link removed]
( go to J, then journalists )
Also, all self-employed persons whether sole-trader or company are open to audit ( examination) of their returns by Revenue.
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