Self Employed, Tax & Advisory
For start ups or the self employed following the tax code and abiding by the law can be a daunting task. At Kinsella Mitchell & Associates we believe that the self employed should focus on their core business, we offer a number of accountancy solutions to assist you as a sole trader. Essentially anybody can start a business as a "sole trader"
(see below) However it is always "good advice" to get good advice.. From the outset, think of your accountants as
an "asset" rather than a "debit" to your business as mistakes made at this stage can be a costly and timely affair.
What are the Main Advantages
Self employed supports is provided by the Citizens Information Board and provides public service information for self-employed people whose incomes are reduced.
Click Here for Self Employed Supports or Contact us for representation with revenue on your behalf or in making any case for reduced income
(see below) However it is always "good advice" to get good advice.. From the outset, think of your accountants as
an "asset" rather than a "debit" to your business as mistakes made at this stage can be a costly and timely affair.
What are the Main Advantages
- You have total control over the business.
- Decisions can be confidently made quickly and easily, from accountancy, financial to general business.
- Getting the right information at the right time
- Keeping the profit, less your taxes
- All business affairs are private and confidential
- allows you to get on with your core business
- Calculations and payments made at the right time, no threatening letters from revenue
- Financial advice and support with backup to future plans and expansions etc.,
- Employment and new employee advice and support
- You are personally liable and accountable for all your businesses debts
- Can be difficult to raise finance
- Tax for self-employed people
The main legal obligation when becoming self-employed is that you must register as a self-employed person with Revenue. Basically you pay tax on the profits from your business and on any other income that you have. As a self employed person or company if you make a late payment of any taxes due by you, you will be charged interest from the due date to the date when your payment is received.
The following are information briefs to help and assist. however the following will be looked after by Kinsella Mitchell, throughout the year and you will be kept informed of those important dates by us
How do I Pay Income Tax?
As a self-employed person you pay income tax under the self-assessment system, once a year. You pay Preliminary Tax (essentially an estimate of tax due for your current trading year) on or before 31 October each year and make a tax return for the previous year not later than 31 October. Revenue will assess your liability for income tax, PRSI and the USC based on the information supplied by you and any amounts that you owe are paid directly to Revenue. You will be entitled to the normal income tax credits and reliefs. - You Must Keep Proper Records Which Must Include:
- All purchases and sales of goods and services an
- All amounts received and all amounts paid out
- You must keep supporting records (for example, invoices, bank and building society statements, cheque stubs and receipts) in case of a Revenue audit, that is, a detail inspection of the history, books, accounting etc.,
- As a self employed person you can claim certain business expenses against tax, such as purchase of goods for re-sale, wages, rent, rates, repairs, lighting and heating, running costs of vehicles or machinery used in the business, accountancy fees, interest paid on business loans, leasing payments on vehicles or machinery used in the business, as well as contributions to your personal pension (up to certain limits). And if you are working from home you may be able to claim a proportion of household bills such as telephone, heating, lighting etc.
Do I Pay Universal Social Charge? - Everyone is liable to pay the Universal Social Charge (USC) if their gross income is over a certain amount each year (explained to you upon appointment)
- Self-employed people pay Class S PRSI on their income.
- Income from investments or rents can be treated differently depending on any other sources of income you have.
- If you do not work and therefore have no earned employment income, you may have to pay Class S contributions on your unearned income (such as income from investments, rent or maintenance payments).
- If you work and pay Class A, PRSI you do not have to pay Class S PRSI on any unearned income you may have. However you must pay Class S, PRSI for any earned self-employment income
Am I Liable for VAT? - You must register for Value Added Tax (VAT) if your annual turnover is more than or is likely to be more than €75,000 for supply of goods or €37,500 for supply of services.
- You as a trader pay VAT on goods and services acquired for the business and charge VAT on goods and services supplied by the business. The difference between the VAT charged by you and the VAT you were charged must be paid to the Collector-General. If the amount of VAT paid by you exceeds the VAT charged by you, the Collector-General will repay the excess. This ensures that VAT is paid by the end user and not by the business.
How Do I Pay VAT? - If you are registered for VAT you must make a return by the due date/s, normally, VAT returns are made every 2 months, however, since January 2012 there are special arrangements for small businesses who can pay at less frequent intervals.
Self employed supports is provided by the Citizens Information Board and provides public service information for self-employed people whose incomes are reduced.
Click Here for Self Employed Supports or Contact us for representation with revenue on your behalf or in making any case for reduced income
- Information placed for general purposes only, for concise individual information, please book a consultation with one of our team of experts.
Kinsella Mitchell & Associates, are registered accountants and auditors and have vast experience of dealing with the self employed.
Our firm has been advising clients for over 35 years and has substantial experience throughout many business and professional sectors.
Our firm has been advising clients for over 35 years and has substantial experience throughout many business and professional sectors.