Tax return newbie

H

HappyBudda

Registered User
Messages
182
Hi, posting this for a friend who cannot get an account activated on this website.
Basically, he set up business (sole trader) in sept 06, registered for vat.
Because of a recurring hand injury had a disasterous year and only had about €11k gross, barely scraped by, and is seriously depressed.
He discontinued the business in August 07.
Got a few personal loans from fanily and banks to keep wolves from door.
What he needs to know is :
1. should he have been paying VAT every 2 months (something about needing to earn over 25k).
2. Will he have to pay tax (doesn't know, has not recieved any forms from revenue) does he have to do a tax return?

Any advice appreciated as he is a broken man
 
He probably wont owe any tax but this will depend on other income e.g. wifes wage. He will have to make a tax return in 2008 for the years he was a sole trader. As business is disconued he should contact tax office and deregister for vat and Income tax at 30.08.07. In the mean time submit vat returns as nil. He should get accounts up to august done soon when all is fresh in his head.
 
If his income is less than €51,000/yr (supply of goods) or €25,500/yr (supply of services), then he does not need to be registered for VAT. To pay any income tax due, he should get himself set up on www.ros.ie as soon as possible. He will receive login information in the post after a few days and will be able to complete Form 11 for his 2006 tax returns before the online deadline of November 15th. In January, he'll be able to make his 2007 returns, although these can be made at any time before next November.

If his situation has changed permanently, then he should contact revenue with his new details. If his hand injury is now better, could he not continue his business?
 
If he charged VAT to his customers, this must be returned to the Revenue Commissioners.
 
He has paid VAT every 2 months albeit not a lot.
He also pays VAT on his van repayments, does he need to continue paying this, who does he contact?
 
You must log in or register to reply here.
Back
Top