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
|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|