Registering for tax as sole trader-what date do I fill in for annual accounts?

S

Stargirl

Registered User
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15
Hi everyone,

I need help filling in Form TR1-I am registering for tax as sole trader from 18 May 09.

What do I enter on the form for the date to which annual accounts will be made up?

Will I need to pay any tax before end 31Oct 2010?

Many thanks
 
Hi,

It really doesn't matter what date you choose as your AP end. Most go for 31 December to give max time for tax calculation prep etc.

If you are commencing to trade in 2009, you are required to file a return and pay the tax by 31 October 2010 (usually extended till mid November for filing online). You may also have to pay preliminary tax for 2010 at that point.
 
Does a sole trader need an accountant to do their accounts or can they do them themselves??
 
Is it the same for limited companies, can I ask?

Thanks
 
TKrack said:
Is it the same for limited companies, can I ask?

Thanks
Click to expand...

Limited companies who avail of audit exemption do not require an accountant/auditor. However unless the directors are satisfied that their knowledge of accounts preparation, corporation tax and company law will pass the rigors of Revenue and the CRO, an accountant would be recommended.

Companies who cannot avail of audit exemption must engage an auditor. Details of audit exemption are on a leaflet on the CRO website.
 
Thanks Graham 07.

Can I ask how easy it is then to wind down a company after it has served its use? Is it an expensive process? I would like to factor all of this in. Thanks again
 
TKrack said:
Thanks Graham 07.

Can I ask how easy it is then to wind down a company after it has served its use? Is it an expensive process? I would like to factor all of this in. Thanks again
Click to expand...

If a company trades profitably and the owners seek to voluntarily liquidate it on completion of its purpose then there may be taxation implications (depending on the assets situation ) and also the liquidation costs. Liquidations vary in cost but upwards of €10,000 for members voluntary would not be unusual.

If the company ceases trading through insolvency that is a different and more expensive matter entirely.

If the company has no assets/liabilities it can apply for voluntary strike off at very little cost.
 
Both solvent and insolvent liquidations can be much cheaper depending upon the complexity of the cases.

As regards whether you need an accountant for a sole trader this is an age old question on AAM. DIY is dangerous if you get it wrong.

As regards filing dates for an 09 commenced business. The filing and payment dates are 31 October 2011 not 2010. Preliminary tax for 2010 needs to be paid by 31.10.10.
 
It depends on the financial position of the company when it has served it use.

You can get the company struck off for around €1,000 or wound up as a Member Voluntary Liquidation for around 3 to 5k. However, these options to not apply of the company is insolvent. The MVL route can be a good way of saving taxes as any money left in the company can be distributed to the shareholders by way of a Capital Distribution and taxable as capital gains tax. The strike off route only applies if the company has no assets or liabilities. Because of the tax savings most companies go for the MVL route.

However, in the unfortunate event that the company is insolvent you are looking at a Creditors Voluntary Liquidation and this will cost you at least €8,000 but could be as high as €20,000 or even €200,000 if it is a substantial company with a lot of assets/issues for the liquidator to deal with. The MVL route is much cheaper because you will have dealth with most of the issues as a director before appointing a liquidator.
 
Pretty good reply this. Some of the fee amounts quoted are debatable. Provincially these can be Strike off €600. MVL probably correct. Creditors voluntary could probably get for 6k. Overall though a good post.
 
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