Sole Trade expected turnover for the first year

[Apoena]

Hello there,

I'm registering myself as a sole trader, and my expected turnover for the first year is actually a big loss, things will get better for the second year on. I'm happy and prepared for that. But, the question is: Can I fill the Tax Registration Revenue Form stating my big loss as my expected turnover at the first year?

I really appreciate any sort of clarification on that.

Thanks

 

[Clonback]

Tax is payable on profits and not turnover

 

[Apoena]

Tax is payable on profits and not turnover

Thank you very much! Very helpful !!

Just for curiosity now, why they ask for Turnover instead of asking for my Profit?

So, is it still ok then for me to state a negative turnover (loss) on the form?

 

[Jon Snow]

Thank you very much! Very helpful !!

Just for curiosity now, why they ask for Turnover instead of asking for my Profit?

So, is it still ok then for me to state a negative turnover (loss) on the form?

Second attempt: TURNOVER is NOT profit (or in your case loss).

TURNOVER is your sales, your income before expenses. The minimum your sales can be is Zero.

 

[Apoena]

I'm sorry, feeling extra stupid now.

I thought that the Turnover was the net sales generated, and by net I understood with all the costs deduced, but no, the Turnover is the total of my sales, the total of my incomes. Am I right now?
Is the Profit the Turnover less the Costs and the Expenses?

Once again, thanks for the help

 

[Jon Snow]

Turnover is your sales.

Gross profit is your turnover/sales less cost of goods sold.

Net profit is gross profit less expenses (rent, salaries, light & heat etc).

You REALLY need to understand these things or you probably shouldn't be working for yourself.

 

[Apoena]

Turnover is your sales.

Gross profit is your turnover/sales less cost of goods sold.

Net profit is gross profit less expenses (rent, salaries, light & heat etc).

You REALLY need to understand these things or you probably shouldn't be working for yourself.

Thank you very much!!!!!

 

[Protocol]

I thought that the Turnover was the net sales generated, and by net I understood with all the costs deduced, but no, the Turnover is the total of my sales, the total of my incomes. Am I right now?

Note that sales turnover IS NOT the same as income.

Income is usually considered to be net profits.

 

[Newbie-employee]

I think you may need professional help filling out this form. What do you think your Sales will be in the first 12-months?

 

[T McGibney]

It's a crucial question as Revenue use it to determine your VAT status vis-a-vis the registration limits.