Employed and Soletrader

E

E. Fudd

Guest
Okay, here's the situation.

I am currently in full time employment and have just registered a business name on core.ie with a view to setting up as a sole trader.
This will be in addition to being in full time employment. So here's the questions:

1. How do I tax myself as a soletrader with a full time job?

2. What tax forms need to be filled out in order to be fully tax compliant,
including VAT?

3. What books do I need to keep?

Bearing in mind that this little venture will, for the first good while, have a relatively small turnover, I would like to keep the books myself, I know each and every one of you will say I'm mad, but thats the way I want to do it for the time being.

All advice will be very much appreciated.
 
1. How do I tax myself as a soletrader with a full time job?
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You will need to register for self-assessed Income Tax with Revenue. Form TR1 is the one to use. Your net income (after allowable expenses) from the self-employment will be added to your other income and taxes at your marginal rate of tax. There may also be PRSI/Levies depending on your other income levels and personal status.


2. What tax forms need to be filled out in order to be fully tax compliant,
including VAT?
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Depending on your business and the tax heads for which you will be registering, tax forms/filing will vary and each tax head has its own deadlines, requirements. You need to read the relevant Revenue guides on www.revenue.ie for each relevant tax head for which you will be registered.


3. What books do I need to keep?
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At a minimum, cash book recording all income/expenses, probably bank records, cheques stubs etc., all invoices/statements for purchases/expenses. Again, Revenue have guides on these on their site.

While I acknowledge your desire to do this yourself, a consult with an accountant would fill in a lot of other information for you or at the least, a discussion with a friend who is similarly self-employed.

Remember deadlines missed or tax under/over paid, is your sole responsibility. As I'm sure you want to spend most of your time running the business rather than administering it, get it set up correctly from the start and it's much easier later on.

Good luck with it.
 
Can anyone reccommend a good accountant to have a chat with so?
 
I'm in the same boat, have been for past year. Definitely get an accountant to sort the end of year stuff, less hassle and they can advise you on exactly what you need to keep track of and what you can write off as expenses etc. You don't need to register for VAT unless you plan on making more than 37000 (I think thats roughly the amount). Your regular employment tax will stay the same - taken automatically PAYE...mine is anyway.
 
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