# doing your own tax as a sole trader



## krabik (27 Sep 2006)

hey folks

   I am set up as a very small sole trader and was thinking of doing my own tax returns.....

   I was wondering a few things on this

1. Where do i get the form to fill out? Do i contact the revenue?

2. Is there a list of expenses that I can legally claim for,so that I know I am not missing out on ovbious ones, eg petrol, mobile, landline, internet, meals etc etc


    many thanks


paddy


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## Will (27 Sep 2006)

Hi Paddy,
Once you're VAT registered you will be posted out the tax return forms by the  Revenue for each 2 month period a few weeks before the return is due.  You can also register on www.ros.ie (revenue online services) and submit your tax returns there instead.

Expenses are a grey area for sole traders.  U should be able to claim whatever you spend directly on the business as an expense.  If working from home you can claim a percentage of electricity, phone costs etc.  There are other posts relating to expenses on this site that may be of more help.​


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## liteweight (27 Sep 2006)

Be careful not to make mortgage payments on sole trader account or to take too big a percentage of the bills. This can lead to a capital gains tax liability if you decide to sell.


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## krabik (28 Sep 2006)

lads thanks for that

Will can I ask... I dont thinkl I am registered fro VAT ??? Do i need to do this in order to get the forms sent out to me every 2 months or can i stay the way I am and ring them up and ask for the forms? (if that makes sense) thanks



paddy


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## asdfg (28 Sep 2006)

If your expected turnover is less that 27K per annumn then there is no need to register for VAT. 

AFAIA, you also have to pay tax as a sole trader. Preliminary tax is due Oct each year with the final amount due the following Jan. In the first year of operation you do not need to pay until the following year but as tax is also due for the current year you are effectively paying for 2 years in one go so maybe be better to pay or divert a certain % (say 20% to 30% depending on the size of your operation) to a bank account to meet the tax bill when due. 
You really need to seek professional advise from a accountant who deals with small businesses. The savings you make could be worth the fee which also is deductable.


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## Doing90 (2 Oct 2006)

Given that you will only find out your mistakes when you are audited in a no. of years time, and that any overclaiming of expenses will incur penalties and interest, I believe that it is essential to use an accountant.

Give your books to him in a tidy fashion, not receipts in a box.
Dont be afraid to discuss cost and details in advance, if you can't, he is not the accountant for you.
I do mine in Excel.
I dont claim any ESB or heating to avoid CGT on home.

I claim only a percentage, about 30% of petrol, mobile, landline, the rest could be said to be not work related.
Every job will have different percentages.

I dont claim anything for meals (I have to eat whether I work or not - Right.)

Best of Luck


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## shelflife (6 Oct 2006)

i agree with doing, talk to an accountant get him to set up your books and advise you of what is allowable or not.then keep the advised records in a neat fashion and present to the accountant when he asks for them , yearly or otherwise.


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## krabik (9 Oct 2006)

Is the 31st October applicable to us as sole traders to send in all our wheelings and dealing? I have only been up and running for a few months and dont think I have made any profit yet.

Is it possible to do your own tax and send it off? 

Do i sent it off to the revenue office of whats the story? thanks paddy


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## ubiquitous (9 Oct 2006)

krabik said:


> Is the 31st October applicable to us as sole traders to send in all our wheelings and dealing? I have only been up and running for a few months and dont think I have made any profit yet.
> 
> Is it possible to do your own tax and send it off?
> 
> Do i sent it off to the revenue office of whats the story? thanks paddy



It seems to me that all your questions have been answered above. Did you actually bother to read any of the replies?


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## NeedingHelp (10 Oct 2006)

The steps that I am taking and my understanding is the following.  Maybe it will help you although I do not need to register for VAT.

I have been in operation as a sole trader since May 2005 so registered with Revenue using TR11 form around that time. 

I set up a simple spreadsheet in Excel recording incomings and outgoings.

I now need to file accounts for May to Dec 05. I believe I should have had a form 11A in the post around August in order for me to make returns. 

This hasn't come so I am now waiting for it after making enquiries.  Once, I receive this I will complete it and send cheque.

I am also looking into registering with ros.ie (revenue online) as I believe you get until NOv 31st to make returns and can do it all online.

It is all a learning process but hopefully I am on the right track.  I am wondering if it would be worth finding an accountant to go through it for a set fee.  I have no idea what they would charge.  I thought I could manage it myself.  If I make a haemz of it, I will probably do that before Nov 31st

All the best with it


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## Vanilla (10 Oct 2006)

In my opinion it is well worth getting an accountant to advise. When you first set up or even beforehand think about the questions you want to ask, get an accountant ( preferably through personal recommendation) in for a consultation. They may even send a bookkeeper instead, since at this stage you really need to know how to practically do your book keeping for the year, when you need to file returns and so on. They may recommend a particular computerised system that they are familiar with and which is suitable for you, though of course you could just use excel or indeed paper. Two hours or so spent with an accountant at the outset will set you up properly for the year, then if you can keep your books yourself properly during the year your accountant should be able to do your returns for you at a minimal cost. It really is great peace of mind to have someone at the end of a phone if you are stuck and to know that your returns are as tax effecient as possible. Not only can a good accountant just do your returns properly but they will be able to give you advice on tax planning over the long term.


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## Kiddo (10 Oct 2006)

Vanilla said:


> In my opinion it is well worth getting an accountant to advise. When you first set up or even beforehand think about the questions you want to ask, get an accountant ( preferably through personal recommendation) in for a consultation. They may even send a bookkeeper instead, since at this stage you really need to know how to practically do your book keeping for the year, when you need to file returns and so on. They may recommend a particular computerised system that they are familiar with and which is suitable for you, though of course you could just use excel or indeed paper. Two hours or so spent with an accountant at the outset will set you up properly for the year, then if you can keep your books yourself properly during the year your accountant should be able to do your returns for you at a minimal cost. It really is great peace of mind to have someone at the end of a phone if you are stuck and to know that your returns are as tax effecient as possible. Not only can a good accountant just do your returns properly but they will be able to give you advice on tax planning over the long term.


 
Have to agree 100% with this. A few hundred euro a year is money well spent especially if you don't fully understand what you are doing...better than ending up paying penalties and interest a few years down the line. I've spent over 10 years working in practice and while there is nothing fundamentally difficult in preparing accounts..if you don't know what you are doing you can make a monumental mess of it. I'm sure there is nothing terribly difficult in wiring sockets but I'm not an electrician so therefore wouldn't attempt it myself 



> I am also looking into registering with ros.ie (revenue online) as I believe you get until NOv 31st to make returns and can do it all online.


 
17th November is the deadline for filing online this year.


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