Advice Please about new company and tax and filing requirments

L

Lordwaffle

Guest
Hi

I registered a company last year {in April} and started to trade and have a couple of queries;

I have not filed any accounts yet, in fact as yet I have not appointed an accountant or set up paying wages. This is just me and my husband involved.

A decent profit was generated from the outset and the business is growing at a good rate.

1. Coming from UK system bit confused here. Can I have March year ends like UK or do they need to be calendar year ends?

2. What is the best, most tax efficient way of extracting profits from this business? For background we have no other income, are married and have {if relevant} 4 children.

One is 18 in a few weeks and does work c.30 hours a week in the business packing parcels. We give him cash but obviously might be more efficient to put him through the books. We do not as yet claim any Irish child benefit for any of our children. Mainly because whilst my partner got around to getting a PPS number, I nor the children did not.

2. I know I missed some 6 month deadline in October. I need to find an accountant but want to minimise their input in order to save costs. Can anyone briefly explain to me what I should be filing for and what penalties do I have?

3. I have to register for vat but only supply zero rated goods {i know, I know, been too busy running the company!}. What are the penalties when I know there will be zero vat to pay only a refund to make?

Any other general advice?
 
Last edited by a moderator:

Different things to check

COMPANY OFFICE

1. Check Date of Incorporation eg 01/04/09
2. File a first B1 form within 6 months of this date(file b1 and no a/c) if not filed incur fine.
3. Next B1 within 12 months of first B1 Date(need to file b1 and accounts)
4. Better get this in order before loosing Audit exemption.
5. If accounting year end 31/12/09 max b1 date in future is 30/09/10

TAX OFFICE- COMPANY

1. File a TR2 to register for Corporation tax, Paye/PRSi & Vat- Backdate the application

2. Any accounting year end you want

2. CT1 to be filed within 9 months after year end and on 21st day of ninth month. pre tax within 1 month before year end

3. P35 to be filed by Mid Feb each year

4. Vat can be by montly, quar or annual when on dd- May be other vat forms if large amount of trade abroad

Personal Tax

1. Director tax return to be filed by 31/10/10- if late fine 5/ 10% of tax on P60


other

How are you living now. If taken money from company normally paye/prsi to be paid on it which would not be long adding up

on p35- put down husband, wife, and son

I would advise at least one visit to an accountant to go throught all the above and get accounts done now to determine position financially


 
Thank you very much for your reply.

The company was registered on 24/4 and the filing date was 24/10. I have missed this so will incur a fine. Do you know how much?

Will be looking for an accountant tomorrow as a priority! But I feel I can get much better advice knowing something going in.

We have been living on income from a sale of a UK property.

Further we registered one name but effectively trade as another name. Do we need to register this trading name and change legal documents?

How long can the first accounting period be? Can we do a 20 month period to 31/12/10?

How far can you backdate your tax application?

99% of our trade is abroad, but all zero rated.

In terms of wages/profit. What is the best route? I.e in the Uk its best to take c.15k each as wages and then the rest as dividend as the effective rate is 10% less. Is this the same in Ireland? is there a 'golden' figure to take wages to and then take the rest as dividend?
 

The fine would be 100 euro plus 3euro a day. download a b1 form from www.cro.ie and sign and fill in and go to companies office if living in dublin and pay fine

accounting period wise better to go to 31/12/09 8/9 months accounts

fill in tr2 form and ask them to register from date you were incorporated or stated trading with an attached letter

in regard to wage/profit- better draft accounts first to see who much has been taken as drawings- if low drawings normally used up lower tax bands and credits if afford to pay tax- really need to draft accounts and them decide
 
Thanks again! Have downloaded the form and will send it off tomorrow first thing. Looking at the form its so easy, just wish I had looked into this before now and saved that fine!

We have a fairly sophisticated accounts package so already know any profit for any period chosen, so will go to end of December 09 as an eight month period. I have just run a report and the profits in this period would be c.240k. Obviously there may be some year end adjustments to go through, but nothing major comes to mind. This year the business is generating between 25-30k a month net profit, depending on sales {and exchange rates!}.

Does the TR2 form do all taxes?

Will they allow us to backdate paye taxes for this period?

If so then we need to determine which is the most appropriate level to take as salary for myself, husband and son, and then how much, if any to take as dividend for 2009 and going forward.
 
TR2 will register the company for Corporation Tax VAT & PAYE/PRSI.
Is that 25-30k a month net profit or turnover?
The optimum level of wages is Ireland is €72,800 for a married couple or €36400 for a single person. As this is the point at which the higher rate of tax starts.
You need to apply for a certificate of tax credits and standard rate cut off for all employees ASAP.
As dividends are not deductable for Corporation Tax dividends are not generally paid as its better to pay wages as wages are deductable. Both are taxed the same in the individuals hands.
If 99% of your turnover is exports then your can get an exemption from Irish VAT on purchases http://www.revenue.ie/en/tax/vat/leaflets/zero-rating.html
Get yourself an accountant it will save you alot of hassel in the long run. Make sure that you have all your documentation in order eg VAT numbers for all the foreign companies you supplied.
 
Last edited:
Thanks Joe-90.

The 25-30k a month is net profit. T/o is c. 80-100k a month. Cost of sales is c.60% and then we have c.10k of net expenses etc.

The optimum level of wages is Ireland is €72,800 for a married couple or €36400 for a single person. = So 72,800 for myself and husband + 36400 for my son, so we extract 109,200 as wages. I am presuming net cost to company will be c.130k once all taxes and NI have been paid?

You need to apply for a certificate of tax credits and standard rate cut off for all employees ASAP. = There are no employees, just myself and husband and our son. We have never ever paid any taxes or anything in Ireland. As I said before there may be an issue in that only my husband has a pps number as yet and I think maybe my son. I definitely do not as yet.

I appreciate dividends were not tax deducitible but I come from UK where they are much more tax efficient, hence my queries. No worries, will just take that salary.

Yes have all foreign tax numbers in place.

Will start looking at accountants today.
 
You must log in or register to reply here.
Menu
Log in
Register