Case Studies

Business Start Ups

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
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