We provide business start ups with tax compliance and advice services including –

• Arranging appropriate tax registrations
• Advice on VAT compliance
• Operating through a company or as a sole trader

Another interesting area is choosing your first accounting date –

Let’s look at this from the point of view of a sole trader.

Selecting the appropriate date depends on –

• Initial profitabilitiy
• If withholding tax due on income.

Assuming no withholding tax, single person & no other income –

Business started on 1 September 2015

Esimtated Profits

September to December 2015	Nil
January to December 2016	€20,000
January to December 2017	€ 40,000

What is the best accounting year end date to use?

The first set of accounts should be prepared for the following period –

• September 2015 to April 2011.
• Thereafter, year end date should be April each year.

If December used – no profits for first tax year 2015
Credits and lower rate band are lost for this period.

Total profits assessed to tax for 2015, 2016 and 2017

Using December year end	€ 60,000
Using April year end	€ 33,333
Difference	€ 26,667