Sole Trader Needs Help With Rates and Vat

Z

zaunty

Guest
Hi All, I recently closed shop as I was trading at a loss for the past year. I was operating as a sole trader and now have a huge amount of personal debt. I was extremely dumb and took the ostrich approach. Reality has just kicked in and I am now approaching my creditors/Banks/CU/CC's/Mortgage Company etc etc. to try and get everything sorted (I am in deep).

With regard to two shop specific debts I was hoping I could get some helpful advice here.

I didn't pay any rates to the local city council for this year. The annual liability is 3,300 but as I closed the shop in Mid Sept I feel that my liability should be pro rata for that period i traded. However, the finance office of the Council have issued district court proceedings against me for the full amount. The court date is set for 18th dec but I cannot attend to plead my case as I have just been offered a job to start 16th Nov. I cannot ask for a day off so soon after starting. I don't own the shop and have surrendered my lease back to landlord. Has anyone any experience of this ? I would like to sort it with the council before court and agree a payment plan with them but feel its hugely unfair that I must pay rates even though I am no longer trading.

Next problem, I calculate my Vat Liability to be approx 12k however I have noticed in other threads something about a 75k threshold? I have tried to research on revenue.ie but am a bit confused. I registered for Vat but my turnover this year has been under 75k so must I still pay this years vat? Also if I am liable for this vat are the revenue open to do a monthly payment plan as I literally haven't got a penny.


Thanks
 
I can't help you with the rates issue but not turning up for court would be a very very bad idea IMO. Unless your new boss is a Monty Burns type of character, I would be amazed if you weren't given the time off to attend court.

In fact, I would be surprised that there is not some form of legislation obliging employers to release their staff for court dates - unpaid obviously

As regards your VAT issue, unfortunately as you were registered for VAT when you sold the goods, you are obliged to charge VAT and pay same over to Revenue

Have you no VAT on Purchases that you can use to reduce your liability?

I would strongly advise you to work out your actual liability and then contact Revenue with a view to organising a payment plan with them.
 
Not sure I am of much use to you either, but I know that normally you pay rates for the full (current) year regardless in advance, by that I mean normally before year end, and then after the 31st December you claim a refund for the unused rateable portion of the previous year.

Sorry I can't be more helpful.
 
Hi thanks for response. Re my new employer, I would rather not tell them about my financial position. This job is a huge break for me and I cannot mess up by looking for time off before I'm there a wet week. I cannot believe my luck that I landed this position and the potential for me is great if I work hard.
I have no intention of just not showing up in court. I want to try and reach an amicable agreement with the council beforehand. However, I just feel that they are being very heavy handed and unfair by looking for rates for the period that I was not trading. The gave me 6 days to pay before issuing proceeding. If I had that kind of cash floating around I would probably still be in business.

Anecdotal evidence from other independent retailers in my area is that the city and town councils are the first ones to put the squeeze on shop owners. See today's Indo also regarding retail. Anyway, sorry I know I shouldn't be ranting here. But.. it's funny how our caring sharing national and local govt are the ones first out of traps when it comes to collecting their money.
 
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