Finlay-Mulligan & Co Client Support: Starting a business - Key details
Many professionals make the choice to become self employed at one point in their career. FMCo. have outlined points below to help
Should I incorporate
FMCo. advice would be to continue as a sole trader until turnover reaches €100,000 or €60,000 net profit.
Should I register for VAT
FMCo. advice is yes, if you as a supplier are providing services above the threshold of €37,500 per year and /or you are a supplier providing goods above the threshold of €75,000, you should be VAT registered.
Expenses such as telephone, broadband and stationary costs are expected regardless of place of office. Purchasing office furniture and a new laptop is again an allowable business expense to offset against your income. Rent is a harder expense to justify to Revenue. Rent is only allowable if there is a room used solely for business use. Travel expenses should be claimed at civil services rates. Depending on your profession, insurance could also be an allowable expense.
Recording expenses and income
FMCo. would recommend using a partner like Xero, which allows business owners scan copies of their receipts and invoices to Xero which saves and retains the copy. All hard copies should be maintained by the business owner separately.