Just started trading as a Ltd company

J

jfitzgerald

Guest
Hi,

Me and 2 others have just started trading as a limited company. We have registered with the CRO. We have not registered for VAT as we are no way near approaching the cut off figure of €34,000 or whatever it is currently. By the way I assume that €34,000 is for the company as a hole and not each director of the company?

I've been told that I don't have to file tax return and pay PRSI in the first year of trading, is this true?

Also so far we don't have enough money to pay ourselves and are just about covering our expenses, are we therefore entiltled to social welfare assistance?

Can someone give me some advise on this please, what do I need to do.

Regards,

John.
 
Hi John,
To answer the question about Social Welfare, it depends on your exact circumstances but possibly yes, there are a few firms who's directors that i know of are Claiming Social Welfare given that the buisnesses arnt making a profit. Its exact circumstances though, hard to judge.

About the Pay and File, well the Companies Office will require a return after the first 6 Months, and the Tax Return - You should have sent in your TR2 already, You can request a "New Business Visit" from your local Revenue office. (how useful this is and whether you want it is another issue) There will be some filing required for the first year, so professional advice might be an idea there.

If youve just started Trading there is the 3 Year exemption from Corporation Tax which might be what your thinking of but i cant see any circumstances where you wouldnt have to file.
Cheers
Awol.
 
oh no, will we be in trouble if we haven't sent in the TR2 form yet........and I assume we will have to notify social welfare of the business so we can be assessed?
 
No generally once you send it in and get sorted Asap you should avoid penalties. I sent you a Pm there so give a shout and i can probably give you a hand if needs be - possibly posting personal details on a forum not the best idea - (im not going to try charge or anything like that, its one of those things just to get sorted and not have to worry about then, pretty straightforward form)

Im based in Cork myself, and the so far revenue office have been fairly decent on stuff like this.

As regards social welfare, generally best way to do it is explain what the situation is to your case officer.
 
Hi Jfitzgerald

As Andrew said it will depend on your circumstances. Unfortunately I do not think you would be entitled to any social welfare as you are effectively not unemployed but self employed.

You would have to shut down your company and business in order to become unemployed and be available for work before you would be entitled to claim jobseekers benefit or assistance.

As regards not having to file tax returns for a year, I believe you may be confusing companys with sole traders/partnerships. It is true that there is a concession from the revenue to file the first F11 at the same tome as the second years F11. However this applies to sole traders only. A limited company needs to file its accounts with CRO and all its relevant forms with revenue on time. i dont know of any circumstances where you wouldn't have to file

You need to register the company for taxes immediately if it is trading via the TR2. On the other hand, it still may not be too late to transfer to a sole trader/partnership and have the limited company either remain dormant or struck off. You should seek professional advise in any case.

Kind Regards


Dbran
 
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