New tax guide out for entrepreneurs
IF you're about to become your own boss, it's worth reading the Revenue Commissioners' guide to starting and running your own business, which has just been updated.
This guide will tell you how you go about paying tax if you set up your own business and the types of tax which your business must pay – whether you set up as a sole trader, partnership or company. For example, sole traders must pay income tax, PRSI (Pay Related Social Insurance) and the universal social charge on the profits of the business – and they must also pay PAYE (Pay As You Earn) tax on any salary paid by the business to its directors. You must usually pay VAT (Value Added Tax) regardless of the type of business you set yourself up as and you may also have to pay Relevant Contracts Tax (RCT) – if you hire contractors. This guide tells you what your tax obligations are, including registering with Revenue for PAYE as soon as wages are first paid and keeping records on PAYE, VAT and RCT for six years. You can get the guide on www.revenue.ie.
Sunday Indo Business