Sole-Trader

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ccbkd

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I have read a few Threads here about operating as a Sole Trader, I have recently undertook this particular status, I have been advised to operate on as simple a basis as possible to start with, i.e don't register for VAT until you believe you will exceed €33,700 etc, keep separate bank account for monies etc.. however I wonder do I need to ring up Revenue and inform them I am no longer PAYE and will be operating as a Sole Trader? what does this entail
 
When you say sole trader, do you mean you're trading or are you self employed? There is a difference I believe. If you're self employed then you just register with them and file a return every year, it's very simple.
 
If you registered as a Sole Trader by filling in form TR1 then they already know. You will be sent out a Form 11 annually to fill in details of all income. You can also complete this form online. You can simply let the PAYE employment lapse, they will notice no contributions through the PAYE system.
 
You need to call Revenue and let them know that you are self-employed. As far as I know you don't need to keep separate accounts for yourself and your business. I think this would only be the case if you're registered as a company, not a sole trader. I operated as sole trader last year and all the money that I earned was invoiced by my business, but then I didn't have a separate bank account for this money.
 
You don't need to keep a separate bank account as a sole treader, but it is advisable to keep monies in a separate accounts for ease of preparing accounts at the year end.
 
I am a sole trader and also a PAYE payer and there seems to be no difficulty from the Revenue Commissioners in maintaining this status. I put in separate tax returns which are then consolidated and reconciled.
 
As a sole trader, the business is you, and you are the business - no separate legal entities.

Therefore you should only submit ONE tax return - a Form 11 including your income from all sources including PAYE income and income from self-employment.
 
I was working as a sole trader but have ceased to do so and am back working PAYE, do I need to de-register or inform any bodies that I no longer operate this way
 
grogsy said:
I was working as a sole trader but have ceased to do so and am back working PAYE, do I need to de-register or inform any bodies that I no longer operate this way
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If you were registered for self-assessed Income Tax and/or VAT and/or PAYE as an employer then you need to inform your local tax district and have all outstanding returns filed and the registration(s) cancelled.
 
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