Questions on becoming a sole trader

S

Steve_b

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I am currently looking to become a sole trader, the business I am looking into is a franchise. It basically runs itself and only requires my input once a week. But I also have a full time job, so this will be on the side.

The business I am looking to run will only make around 17-19 k per year net. I just want to know if being a sole trader will I require an accountant for tax returns, as I have no idea about this part. If I become a sole trader will I have to fill tax returns each month or just at the end of year, and if I made say 17k for that physical year net, how much do I pay on tax?

Or is it based on gross?

Last question is based on my own tax as a employee, will this be affected if I earn as a sole trader as well?

I know its a lot, but I am new to this

Thanks guys
 
Thats a lot of questiions Steve! I suggest you read the guide to small business on the revenue website and comeback here with anything that needs clarification

1.

"The business I am looking to run will only make around 17-19 k per year net. I just want to know if being a sole trader will I require an accountant for tax returns, as I have no idea about this part. If I become a sole trader will I have to fill tax returns each month or just at the end of year, and if I made say 17k for that physical year net, how much do I pay on tax?"

What is the gross turover? depending on nature of trade you may be required to register for VAT- or you may want to choose to register for VAT even if below the registration thresholds.

Tax will be on the net profit of the business less any capital allowances at your marginal rate



2. "Or is it based on gross?" no

3. "Last question is based on my own tax as a employee, will this be affected if I earn as a sole trader as well?"
No-- unless you want to reduce the tax credits applied to your current employment and allocate them to your new venture
 
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I contacted a accountancy firm and asked all the questions listed. I have to say far play, he answered them for me at no charge.
 
Some pointers based on my experience

1) You should look at puttings the earnings from the sole trader work into a PRSA as it can be very tax efficient. Depends on total earnings and your age etc, talk to a pension person or accountant

2) You have to do yearly tax returns, you will probably need an accountant so that you are sure you claiming for all expenses that are applicable

3) Keep all receipts for costs incurred related to sole trader work

4) Should you be thinking about the protection a company gaves you through limited liability versus a sole trader? Depends on the type of work the franshisee business does I suppose

5) PAYE tax is not affected
 
Finally, is there anything suspect about this franchise? You say you can make almost 20k per year net with a franchise that "basically runs itself" and only requires your input "once per week".

If it looks too good to be true? Why would the franchiser even want to share this with anyone if its so easy to make money?
 
I've heard of a new site www.paylesstax.ie that helps PAYE employees file for additional income. Not sure how good or bad it is but seems like a good idea at a glance. I have no affiliation.
 
I have used the mentioned site. However it cost me more money in the long run. I did not know certain expenses that I could claim and although the premium service will "check your figures", you need to know what figures to put in, in the first palce.

It cost me more in time and money,

Leave it to the professionals is what I say.

George
 
I am a sole trader non registered for vat. my accountant tells me that I must register for vat as I will exceed the threshold of 37.5k this year. I work in the insurance business and currently get paid a set fee per claim. i dont invoice the company. I am told that the insurance industry is exempt from VAT so the company wont pay my fee plus vat.. can anyone shed light on this.
 
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