Cancelling VAT registration

Many businesses are facing decreased turnover levels and are considering deregistering for VAT. Are there any clawbacks of VAT previously claimed? This depends on whether the business elected to register for VAT. A business can elect to be registered for VAT even though turnover is below the thresholds for registration. A business which elected to register for VAT may cancel registration by arrangement with the relevant Revenue District. However, it can result in a VAT liability. Any excess of VAT refunded over VAT paid during the 3 years prior to the cancellation (or the period of election […]

VAT Invoices

Whether you print VAT invoices straight from your accounting package or manually write them in a duplicate book, here is a reminder of what needs to be included and when they should be issued. VAT invoices must be issued within 15 days of the end of the month in which goods or services were supplied. VAT invoices should also be issued for payments received in advance. VAT invoices should contain the following: A sequential number that uniquely identified the invoice Invoice date Name, address and VAT registration of the trader issuing the invoice Name and address of […]

VAT Registration

When you are starting your own business, whether as a sole trader, partnership or a company, you need to determine if you are obliged to register for VAT and what VAT rate should be applied to your sales. Once registered VAT charged on sales needs to be paid to the Revenue Commissioners (after deducting VAT on purchases and expenses) on a timely basis. Who needs to register? The main reason for registering for VAT is that the business engages in the supply of taxable goods or services within Ireland. A business whose turnover, in any twelve […]

Registering as a Sole Trader

Click here to arrange a meeting or here for a telephone call. A sole trader is the simplest form of business in Ireland. As the name implies, it refers to one individual who owns and operates a business. A sole trader can have employees to assist with the running of the business, but it is the sole trader who owns the business, taking all the risks and rewards. To register as a sole trader you will need to complete a Form TR1 (available on, sign it and send it to your local Revenue District Office. Thinking of starting your […]

Mileage and Subsistence

Generally, an employee or director is liable to tax on expenses received from an employer. However, where an employee or director incurs motor or subsistence expenses in the performance of the duties of their employment/office then the reimbursement can be made tax free with certain conditions. Employees or directors must be on a business journey from their normal place of work to claim tax free mileage and subsistence. A common mistake that sole traders make is to claim mileage and subsistence using Civil Service Rates. They can only claim for the actual expenses they incur so […]

Non Principal Private Residence Annual Charge

The €200 annual charge on non principal private residences for 2010 must be paid between 1 April 2010 and 31 May 2010 for non principal private residences held at 31 March 2010. See for details. Update: Late payment fees come into effect from 1 July 2010 and are €20 per month or part of month. Payment can be made online at on/after 31 March 2010. PDF

Extended Deadline for Disclosing RCT Errors

The Revenue Commissioners have extended the deadline to 15 April 2010 for making a disclosure in relation to the RCT Return for 2009. If a principal contractor discovers that payments were made gross to any subcontractor who had a valid C2 but not a revevant payments card, then a qualifying disclosure should be made before 15 April to avail of a fixed penalty of €3,000 rather than the normal interest and penalties, which could be substantial. The fixed penalty of €3,000 will apply to each instance of the failure to deduct RCT. It only applies where […]

Mandatory e-Filing of Tax Returns

As you may be aware, from 1 January 2010, the Revenue have extended the mandatory online filing requirements to include “large companies.” Initially “large companies” were to be identified as those not qualifying for audit exemption. However, the Revenue have now clarified that the mandatory online filing requirements are for companies with: Turnover greater than €7.3m and Number of employees greater than 50 Therefore, companies meeting these conditions must pay and file all tax returns online including VAT, PAYE/PRSI and Corporation Tax. PDF

4 Things Every Company Director Should Know

Through our experience of forming companies and helping clients to set up in business we have compiled a list of 4 things every director should know to ensure that the company and director are compliant with the Revenue and the Companies Registration Office. 1. Deadline Dates Deadline dates are strictly enforced by the Revenue and Companies Registration Office and penalties and fines are regularly imposed. Ensure that you keep a note of  your company’s Annual Return Date and Corporation Tax deadline and that you forward your books and records to your accountant as soon as possible […]

Sole Trader v Limited Company

So you have a new business idea and have sketched a brief business plan. What are your options in terms of structure and how do you decide which one is right for you? There are two main options open to entrepreneurs setting up in Ireland – sole trader and limited company. I will briefly outline the differences between the two and the issues you need to consider when making a decision on which structure to choose.   Sole Trader Sole trader is the simplest option. To set up as a sole trader, you will need to […]