starting a business?

Due to recent income reduction at my paye job i have decided to take
the oppurtunity to earn some extra money by Djing. Am i correct in saying
that I would be looked on as a sole trader and have to do a self assesed tax
return by oct 31 for the previous year ie. 31/10/10 for 09? Is it then possible
to use receipts for cds, mp3s, equipment, fuel and other costs to reduce my
tax bill? I would envisage earning a good bit less than 1000 per month unless
it goes very well. I also currently am in the higher tax bracket as a paye
worker. I appreciate any help. cheers

Essentially you have it right - but more think of being taxed on the profits generated i.e. takings from dj'ing less expenses = amount to be taxed.

You need to register for self-assessed Income Tax on form TR1. Expenses "wholly and exclusively" incurred in the performance of your work are deductible. CD's, adverts, phone, equippment ( cost x12.5% pa for 8 years ) etc. Regarding motor you can claim a % of your motor costs based on the actual costs incurred for fuel, tax,insurance,servicing, Wear & Tear, finance interest, applied to the miles travelled as a % of your total mileage for the year. You cannot claim a mileage allowance, you must base the claim on acutal costs.

Your profit ( income les allowable costs ) is taxed as a top slice of your income so if you are already a higher rate taxpayer it would be at 41% + PRSI + Levies.

Thanks. So I presume I can only claim expenses incurred after the TR1 has been submitted? I already own most of the equipment and have a vehicle.