Part time going full time..?

Hello all,

Sorry If I'm asking silly questions here but I'd like to clear up a few things. I am in full time employment with a company (automotive related) and do "nixers" in my own time - evening's and weekend's in a similar field to my employer but in a corner of the market they have no interest in. I would like to expand this into a part time business with the view of going full time when the time is right. Considering I do not need to make any profit for myself at the moment - Is the best approach to become a sole trader for the time being..?
I intend to invest all monies earned back into the business (equipment, raw materials etc), will I have tax problems if I'm claiming to be making no profit..?

Revenue have only interest in a return which is accurately prepared & filed. If you have other income which shows that you are able to live off it, then making little or no profit in the early stages of a new business would not attract any undue attention from Revenue. Bear in mind that equipment is not written off against income all at once but rather over its expected useful life. And for tax purposes the allowance is 12.5%pa. So even if you reinvest your profit in equipment you may still find yourself with taxable profits. Sole trader is the simplest way to commence. One can incorporate if the business model justifies it at a later stage.

Graham_07 said:

Revenue have only interest in a return which is accurately prepared & filed. If you have other income which shows that you are able to live off it, then making little or no profit in the early stages of a new business would not attract any undue attention from Revenue. Bear in mind that equipment is not written off against income all at once but rather over its expected useful life. And for tax purposes the allowance is 12.5%pa. So even if you reinvest your profit in equipment you may still find yourself with taxable profits. Sole trader is the simplest way to commence. One can incorporate if the business model justifies it at a later stage.

Click to expand...

Thank you very much, you've been a great help.