Starting a business is an exciting time that is full of possibilities. However, when beginning this adventure, it is important not to forget about your civic duties as a new business owner, one of these being tax. Tax is like any other overhead in a business, it needs to be managed and controlled to ensure healthy cash flow management.
Where do I start?
First things first, Revenue should be contacted upon the commencement of a new business. You must notify them within one month of starting any business activity – this can be done online by the Revenue Online Service (ROS) or by filling out Form TR1 or Form TR2 – depending on your circumstances. Before registering, you must also decide on the legal structure of your business. You have three options to choose from:
- Registered as self-employed for tax purposes
- Personally exposed for any losses
- Two or more persons
- You should draft a formal partnership agreement
- Each partner is personally liable for the losses of the partnership
Limited Company (LTD)
- A separate legal body
- You must choose a company name, draft an appropriate Memorandum and Articles of Association, and complete a Form A1.
- Members of the company cannot be held personally liable for the company's debts or liabilities.
For more information with regards to specifics mentioned above, refer to the Local Enterprise guide here. You will find partnership agreements on page 22, and more about Limited Companies on page 7.
What do I have to pay?
First things first, you must be familiar with what you’re paying, and why you’re paying it. Typically speaking, every business owner will pay:
- Income Tax
- Capital Gains Tax
- Corporation Tax
- Relevant Contracts Tax (applies only to the construction, forestry, and meat-processing industries)
- Dividend Withholding Tax
- Professional Services Withholding Tax
How do I pay them?
Once you have registered with the Revenue Online Service, you have everything in one place. From PAYE services to tax returns, ROS gives you all the tools that you need to manage your account.
If this seems overwhelming, don’t be afraid to contact an accountant in relation to your taxation needs. After all, nobody does it better than the professionals. Don’t slack on your company’s tax, it’s vital that it is completed correctly. If you’re worried about financing an accountant, why not look into GRID’s Cash Advance option.