Sole Trader Query

T

tyronegirl

Guest
Hi all,

I need to put through tax returns for some contract work I did last year and would appreciate any advice.
Basically in 2006 while on maternity leave I was made redundant. At the end of the year I started receiving social security. In April 07 I started a contract position for 3 months, signing off social security. I only made a max of 15k in the 3 months so am not liable to pay any VAT. I have yet to register as a Sole Trader. Should I do this now and complete tax returns by the end of the month? I don’t need to claim any expenses or anything so need to keep it as simple as possible.
In addition to this, can I claim any tax back while on maternity leave in 2006 as an income tax payer ? I was on maternity leave from Mar – Nov and then made redundant.
Any advice would be appreciated.
Thanks
 
For 2007 you should register as self-employed - complete a Form TR1 and submit to Revenue.
You need to submit a tax return for 2007 by 31 October 2008 (or extended deadline if filing on ROS).
You may well be able to claim expenses against this income - you should really get advice in this regard.
 
Thanks so much for the reply. I became a PAYE worker in July then, is it is still ok to register as a Sole Trader for the 3 months ?
 
Yes,

You should also consider naking claims for any expenditure incurred while self-employed, such as travel.
 
you do not need to register as a sole trader at all, unless you operated under a name different to your own. You don't need a TR 1 either simply complete a tax return for the year and enter your earnings from self employment under any other income.
Entering income and expenditure travel, telephone, statioinary etc and submit the balance as the taxable income the revenue will let you know how much is due.
As far as I am aware you cannot register as a sole trader if you are or have already been trading.
 
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