Tax on a new limited company

I have set up a limited company with a family member. We will be trading in art, which we’ve lots of experience in.We have used our savings to fund it.

However, I have no idea about tax or bookkeeping. We just registered with the CRO in the last week and also set up a bank account. We have also started purchasing stock but won’t be selling anything until at least September. I have a few questions. I called the revenue but they really weren’t very helpful. I wonder if anyone could assist me with these below:

1.Regarding tax, do we need to register with the revenue straight away or wait until we file a return?
2. Do we need to file a tax return six or nine months after we start up?
3. Someone mentioned to me that there is a special tax exemption on profits scheme for the first 2-3 years of trading for new businesses. Does anyone know how that works, or if there is a specific website where I can get information on it?
4. We will not register for VAT as our turnover will most likely be under €70k for 2012. Once we reach the threshold how soon do we need to register for VAT?
5.What would happen in the unlikely event that a painting made a lot more money then projected and we earned over the VAT threshold? Would we get fined or can we register at that point?
6. The other director lives in Ireland. I currently live outside the EU in a developing country. I want to keep up my PRSI, as I am not initialed to a state pension where I live and also would like to move back to Ireland in the near future. Can I pay myself like a resident of Ireland or do I need to do something else?

1. Register straight away with the Revenue. Also register for ROS, as you will have to file all returns that way.
Form 11F has to go to the Companies Reg. Office within 30 days of registering the company with CRO.

2. A company can choose its own accounts period, and could change the year end date in a subsequent year. If you are not going to be trading till September you could, for example, prepare accounts to 30/08/2013. The Corporation Tax return may not be for a period longer than 12 months and must be submitted within nine months of the accounting year end.
The first return to the CRO is 6 months after incorporation date. This is the B1, no accounts attached. It is simply a form showing shareholding, ownership, and any changes. Following that, annual returns with accounts are required.

3. The exemption from CT for new companies is linked to how much employer's Prsi has been paid. If the directors are the only employees the company will not qualify. See here:[broken link removed] "Tax Relief for new start-up companies"

4. For Vat registration, you should register if you expect the turnover to exceed the threshold in any twelve month period. The calendar year is not relevant.

5. You do not wait until the threshold is passed, to register. You should be estimating future turnover, based on existing trends. If the turnover looks as though it will exceed the threshold you should be registered.

6. As a director of an Irish company your director's emoluments are seen as Irish income, no matter where your residence.

Thanks so much for the advice. I do think I need proper tax advice. Can anyone recommend a well regarded company that deals with tax affairs for small businesses?

Google a local accountant.

If you want a tax consultant, search for AITI Chartered Tax Adviser.

Some accountants are also registered tax consultants.