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02-02-2019 - - 0 comments
SYOB - Revenue Requirements

Sole Trader - From a tax point of view the Sole Trader is liable for Self- Assessment

Income Tax in October of every year on Form 11- There is not a weekly payslip with deductions of PAYE/PRSI/USC. Instead the Form 11 is completed with deductions on the profit figure at the rates of PAYE/PRSI/USC in Oct as part of IT Return

Partnership- From a tax point of view a partnership is liable for Self -Assessment Income Tax in October of every year for each partner - not a weekly payslip similarly to a Sole Trader

Limited Liability Company from a tax point of view a company is liable for Corporation Tax on its profits at its year end (aprox 9 months from its yearend)

There are 2 online systems on the revenue website www.revenue.ie myAccount and ROS

myAccount is a single access point for secure online services for individuals it enables you to access PAYE services, such as :

  • manage your tax record
  • claim tax credits, including relief for health expenses
  • declare additional income
  • register a new job or pension

and many more using your single login and password. It is a quick, convenient and easy way to perform a number of tasks. These include updating your personal details, reviewing your tax affairs, making payments and applying for certain tax reliefs and incentives

 ROS enables you, or your Accountant, to view your current tax position with the Revenue, when you are Self Employed.

You can:

  • Register as a business with the Revenue using form TR1 for Sole Trader or Partnership and TR2 for a Limited Company
  • File tax returns and forms
  • View your tax position for various taxes and levies
  • Make payments for these taxes online in a variety of ways
  • Communicate with Revenue securely.

The form TR1 is used to register as a Sole Trader or Partnership with the Revenue Commissioners. (TR2 for a limited company) TR1 taxes for registration include

Self -Assessment Income Tax (Form 11),

Registration for VAT,

 Registration as a Employer ref PAYE,PRSI and USC

Subcontractors Tax RCTDC

WHT is not mentioned on the TR1 or TR2 but It would be a good time to point out that a withholding tax (WHT), at the rate of 20 per cent, is deductible at source from payments for "professional services" made to sole traders and companies by "accountable persons" to include Government Departments, local authorities, health boards, and State bodies. The tax is charged on payments net of (after deducting) value-added tax. A wide range of professional services is included - to include consultancy and mentoring. The tax deducted is later set-off against the tax chargeable on profits earned by the business.

You do not have to register for all these taxes in the beginning you can go back at any stage and register for example for Vat or as an employer using the TR1 again

Under Self-Assessment Form 11 , there is a common date for the payment of tax and filing of Tax

Returns, i.e., 31 October - extended for ROS filing and  allows you to file your Tax Return and pay the balance of tax outstanding at the same time.

This system, which is known as Pay and File, requires you to:

  • file your return for the previous year
  • make a self-assessment for that year
  • pay the balance of tax for that year
  • pay preliminary tax for the current year.

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