Sole Trader ~ clarification please

T

Tetragon

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I'm a Public Sector PAYE worker.

I've read the key posts and looked through the Revenue website but am as confused as ever about whether or not I can/should set up as a sole trader.

I'm hoping to supplement PAYE income.

I have a few acres of land suitable for rearing fowl ~ pheasants specifically. The plan would be to start small operation and grow the business if the black out weighs the red.

I'd need to build pens, buy stock, equipment, feed etc. I have access to some specialist equipment - feeders, incubators and other bits and pieces.

I wouldn't have the turnover to justify setting up a company or registering for VAT.


  • Can I work my PAYE job and register as a sole trader at the same time?
  • How does one impact on the other?
  • My reading of key posts - as a sole trader I keep track of expenditure, income and do a balance in my returns and pay tax on my profits - is my simplistic analysis correct?
  • If it costs more to set up than what I make can I offset against my day job?
  • What are the general implications for me as an individual if I set up as a sole trader and do very little trade?
  • Are there minimums required of me?

Excuse my simple questions .... I have trawled and trawled looking for info but am new to the idea of setting up as a sole trader.
 
As long as you are going into business in order to make a profit (as opposed to a hobby), you need to register for Income Tax using a Form TR1.
You then prepare a set of income and expenditure accounts each year and are taxable on any taxable profit - or if you make a loss, the loss can be set against your other income in that year.
I suggest you get professional advice at least for the first year of trading to ensure your accounts and tax return are prepared correctly.
A useful guide can be found www.revenue.ie called "setting up in business"

www.taxingtimes.ie
 
And operate it from a seperate bank account.

One thing to note, I believe this activity will be regarded as farming and as such, unless you make a profit in 1 out of 4 years, the losses will not be available under s.381 for offset against other income.
 
Thanks for replies Domo and Paddy199.

My apologies for not logging in sooner.

I've been looking at the form TR1. I presume I fill it in as an 'individual' and that sets me up as a sole trader?

Looking at the form I have to fill in:

* Part A1 - General Details (Individuals)

* Part A3 - Business Details - it doesn't look as if this is mandatory and that it doesn't has any effect on my registering either way. Can I go to CRO and register a business name '"Tetragon's Birds" and use that while still a PAYE worker? or is that confusing the issue? If I bypass section A3 will Revenue still recognise me as a business or do I have to specifically tell them I'm "Tetragon's Birds"?

* Part B - Can I ignore because I'm already registered as a PAYE worker?

* Part C - Registration for VAT - I'm not doing as my turnover won't be high enough to justify it.

* Part D - Registration as an Employer for PAYE/PRSI - I'm not doing because I won't be employing anyone and I'll be paying as I go along.

* Part E - Registering as a Principal Contrator - doesn't apply so I'm not filling it in.
 
You need to fill in A1, A3 and B. Why would you not fill in A3? I would suggest the form will be returned to you for completion.

In B, you tick income tax and trade. Remember PAYE is not Income tax.

Yes go to the CRO and register your business name.

One question, have a quick check of your employment contract and ensure it does not prohibit you from having other business interests.
 

Just put down 'pheasant farming'. Don't confuse them with a business name.

Fwiw, very few farmers in this country have business names unless perhaps they're sellling branded products to the public or trade, so there may not be much point in you having one, although for €20 having one is not exactly a major investment.


Just write N/a across each section

PS you should check if your new enterprise needs to be registered with or notified to the Dept of Agriculture.
 
I have to register with the Dept. of Agriculture and be open to inspections etc.

It's the registering with Revenue that was stumping me.

Thanks for all the advice received. It's much appreciated.
 
If you are rearing pheasants does that mean you will looking to employ a pheasant plucker ?
 
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