Starting an online business

[flashinglights]

Hi.

I am a full time worker but I have a small business going currently both online and offline.

I want to go "legit", it is going relatively well but has potential (I think) to do better next year, but I dont want to put more effort into it unless it is set up properly, I just dont know what to do or what the implications will be on my tax etc, or how it will mess with my current wages with my employer.

Can someone point me in the right direction or give a step by step? Presume I will be a "sole trader"

Can I earn up to a certain amount that nothing will happen or do I pay tax/vat on everything...

For context it is an online clothing brand...

 

[Protocol]

As you are a sole trader already, you have probably read this already:

A guide to self-assessment

This page outlines the basic principles of the self-assessment system as it applies to Income Tax and Capital Gains Tax (CGT)

www.revenue.ie

You must register for self-assessment if:

• your taxable non-PAYE income exceeds €5,000
• or
• your gross non-PAYE income exceeds €30,000.

If your revenues/profits are below these limits, you simply declare the extra profits in your normal Form 12 tax return in your Revenue MyAccount.

If you are above the limits, then you register for income tax on ROS, and submit a Form 11.

 

[Protocol]

VAT is a more complex area, which typically requires an accountant.

Who should register for VAT?

This page explains who should register for Value-Added Tax

www.revenue.ie

What are the VAT thresholds?​

Value-Added Tax (VAT) registration is obligatory when your turnover exceeds, or is likely to exceed, the VAT thresholds. The thresholds depend on your turnover in any continuous 12-month period.

The threshold for intra-Community distance sales of goods and cross-border telecommunications, broadcasting and electronic (TBE) services relies on your turnover in a calendar year.

If the turnover is less than a threshold limit, you may elect to register for VAT.

The principal thresholds are as follows:

• €42,500 in the case of persons supplying services only.
• €42,500 for persons supplying goods liable at the reduced or standard rates which they have manufactured or produced from zero rated materials.
• €85,000 for persons supplying both goods and services where 90% or more of the turnover is from the supplies of goods other than goods referred to above.
• €85,000 for persons supplying goods.
• €10,000 for taxable persons making mail-order or intra-Community distance sales of goods and cross-border TBE services into the State. The threshold is calculated by taking account of the suppliers, or deemed suppliers, total value of intra-Community distance sales of goods and cross-border TBE services to customers in all European Union (EU) Member States. The threshold only applies where the supplier is established and has their permanent address, or usually resides, in only one Member State. Otherwise the supplier must register for Irish VAT in respect of such supplies. See the intra-Community distance sales of goods and the Electronically supplied services webpages for further information.
• €41,000 for persons making acquisitions from other EU Member States.