Poor entrepreneur ...

H

hmm

Guest
I'm a web developer that has spent a reasonable amount of time developing some online businesses that I hope to launch in the coming weeks. All of which are pre-revenue.

To keep myself going, I've done a few odd web jobs on the side whenever I need to make some cash to keep me living. I don't own a car, or have any property or assets so to speak of.

I'm currently living in a youth hostel and I've recently moved out of my mates gaff. I'd certainly qualify for social welfare assistance if I chose to register, as I currently live on less than I'd be receiving if I'd signed-on.

I'm perfectly happy with my situation at the moment, and as I see it - I'm making sacrafices now that will pay off later. I have complete creative freedom to work on my own projects which is great.

My question is this though, what's my tax situation with regards to the 'web business' that I run on the side ? How much can I earn from that buisness before I have to register it and start paying income tax ? I almost never take on more than one job a month, usually I'd earn 500-600 / month or less. Up to now, I wouldn't have been even able to afford to pay tax.

I'm getting to the stage now where everything is nearly ready to launch. And I'm trying to tie up some loose ends. I'm hoping the tax man isn't going to screw me on this. I don't think my tax bill could possibly amount to more than a few hundred euros anyway ...
 
hmm said:
My question is this though, what's my tax situation with regards to the 'web business' that I run on the side ? How much can I earn from that buisness before I have to register it and start paying income tax ?
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See www.revenue.ie for details of the relevant exemption limits and tax bands.

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What is the outline of your earnings and expenses to date? Are you a sole trader? Are you registered for VAT or need to be? Do you have an accountant or somebody else to advise you on the tax and regulatory aspects of your business?
 
I think you still need to register for Income tax regardless of your income. However, most people who are just doing a few nixers don't bother.
 
Technically speaking anyone receiving income outside of the PAYE collection system which exceeds a specific amount is required to register for self assessment income tax. They must file and income tax return, correctly calculate their taxable profit etc and this will determine the extent of your Income Tax liability.

The VAT thresholds (if I recall them correctly) are 75,000 for goods and services and 37,500 for services only. So if turnover exceeds the applicable threshold there is an obligation to register for VAT. Web developing would probably be treated as service only but Revenue site have large database of classifications for various activities and they would prob note the applicable threshold on this.
 
What is the outline of your earnings and expenses to date? Are you a sole trader? Are you registered for VAT or need to be? Do you have an accountant or somebody else to advise you on the tax and regulatory aspects of your business?
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Haven't earned much. Don't have many expenses. I certainly don't need to be registered for VAT. I don't have an accountant, but it looks like i'm going to need one.


What's the specific amount ?
 
ClubMan said:
I thought that the amount in question was c. €3K+?
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This figure applies to someone earning under the PAYE system also. I don't think OP has any other income other than self assessment therefore he would be obliged to register irregardless of profit/loss
 
Yes, that is correct. If you don't have income taxed within the PAYE system AND only have income outside of the PAYE system then there is an obligation to operate self assessment.

If the person is in employment AND has income outside of employment not in excess of the circa €3K amount then such a person would NOT have to operate self assessment and would not have to register for Income Tax with Revenue. Instead tax on the other income can be collected through a reduction of the tax credits.


This figure applies to someone earning under the PAYE system also. I don't think OP has any other income other than self assessment therefore he would be obliged to register irregardless of profit/loss
 
ClubMan said:
To what?
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Maybe it's just me but the style and tone of the OP's post seems remarkably similar to another post made in the recent past. Someone who was involved in setting up several surefire internet businesses. Can't find the post.
 
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