Fulltime PAYE, part time business

D

Daithim

Registered User
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Hi all.
I have an idea for a small business to suppliment myself as a fulltime PAYE worker. I wouldn't be the best at the book keeping side of business but am willing to learn.
Anyway, is it a common thing nowadays for PAYE workers to start a business on the side and make it work?
What are the minimum requirements required by revenue to run a small business. I basically need to start it first to see if it will work. I will be providing a service supplying and fitting car parts/accessories etc.
So will I be charging 13.5% vat on parts I fit and 21% on parts I sell?
Sorry for sounding a bit ignorant but i'm on a learning curve.
 
First of all you will want to see if you fall in under the VAT thershold

http://www.revenue.ie/en/tax/vat/registration/index.html#reg3

Might be an idea to run without VAT for a while, depends on the business


IIRC you charge the VAT rate at the rate of the item that has the most value

e.g.

Fitting Charge comes to €100 and parts comes to €20 you charge the whole invoice at 13.5%

Parts come to €100 and fitting comes to €20 you charge the whole invoice at 21%.

Its been a while so I'm open to correction on the above but Im nearly sure that is correct
 
For the amount of VAT to charge you should use the two thirds (2/3) rule.
If materials are greater than 2/3 of the value you must charge the 21% rather than the 13.5% rate.
 
As this is a part-time business and likely to be small-scale, there should be no need to concern yourself much with VAT in the initial stages unless:

- the business will be generating sufficient turnover from day one to make VAT registration compulsory; or
- there is a compelling business reason to register for VAT from day one.
 
Hi,

I'm interested in doing something similar. I'm mostly interested in what's the best thing to do to minimise PAYE/tax? It would be small scale work on the side and I'm trying to see how best I can reduce the tax I would have to pay as a result but I don't know where to start?
 
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