PAYE Sole Trader with foreign Sub Contractor (Canada)

R

RIRE

Guest
I am new to this forum so excuse me if this question has been asked before.
I have registered as a Sole Trader since December 2008
Being new to the whole process I also registered for VAT and PAYE. (I have no employees yet – not enough cash flow)
Since January I have done some software development on a customised POS (point of sale) system.
For the sake of simplicity let me give this illustration, and payment breakdown.
______________________________________________________________________________
The invoices was : €5000.00 (software development cost)
: €1075.00 (VAT charged)

The cost breakdown : From this €5000.00 that was charged to the customer, I received €2000.00 and I had to pay €3000.00 to a subcontractor. This subcontractor is in Canada, he did not charge me their equivalent of VAT and I did not charge him VAT
That leads me to my questions:
1. How do I work out what PAYE I have to pay revenue? ( I received my P30 in the post last week)
2. Do I have to pay PAYE on the full amount €5000.00 or just on what I earned €2000.00?
3. When do I have to pay the €1075.00 VAT to the revenue commission? (Seeing that this is contract work and not a steady income – I might not be paid in two months till I get some work in again)
Regards, and thank you for any advice.
Rohan
[broken link removed]
 
If you have no employees then you fill in the p30 as zero and send it off. You will pay tax on your own profit at the end of your financial year. You are not an employee. You would be if it were a Ltd co you set up. Just say you do up first set of accounts to 31/12/09, the tax on that profit becomes payable by 31/10/10
 
The questions that I still have is:
1. How do I work out what PAYE I have to pay revenue? (in general what is the folrumae)
2. Do I have to pay PAYE on the full amount €5000.00 (that was charged to the customer) or just on what I earned €2000.00 (€3000.00 was payed on a invoice to the sub-contractor)?
3. I pay VAT bi-monthly, on what was charged to customers, but how do I calculate what personal tax I have to pay at the end of the year?

Thank you in advance.
 
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