The phone call
One lunch time while sitting down to have a well deserved cup of freshly ground coffee, my phone rang. I answered it and I started a conversation with a young man who was obliviously uncomfortable with the whole idea of dealing with a tax advisor. Let’s call him ‘M’!
M had come to me as a referral from existing income tax client. He owned an investment property and didn’t know how to deal with the tax situation. He searched on the internet and visited all the chat rooms and got a list of different answers as long as his arm. The pinnacle came when a colleague from work, some years older than himself heard about his situation and informed him that, “he’d have to pay a bucket load of tax…” Of course, this response led him to a number of sleepless nights until a friend (my client) gave him my number and told him to go and have a chat with me.
The above is a classic situation of numerous phone calls that I receive. Where people have worried themselves and missed numerous hours of sleep worrying about a situation that can be rectified (almost!) by a phone call to a friendly tax advisor or accountant. The hardest thing is making that call!
We are now at the final part of the 3 Part series covering the main options open to anyone wishing to start a business. This option is to form a Limited Company.
There are number of types of limited company but the most common one is a company limited by shares. If the company is a limited liability company, the shareholders’ liability should the company fail is limited to the amount, if any remaining unpaid on the shares held by them. A company also requires 2 Directors and a Company Secretary although one of the directors can undertake the secretarial role. Many start-ups are slightly apprehensive about the procedure involved in forming a company but we can remove this worry by doing everything for you. The process usually takes a week from start to finish. We can also complete the required registration for taxes that all companies must carry out before they start to trade.
The main advantage of a limited company is that it is a separate legal entity from the individual directors. In other words, the company is distinct from the directors and the shareholders. It may be more suitable for certain types of business than others. On the flip side the administration costs are higher as an annual return must be made to the Companies Registration office and there are also Corporation Tax filing obligations. We would advise that you speak to a professional adviser such as ourselves to ensure that you can make the best decision for your business.
This concludes the 3 part series on the options available to anyone looking to set up a business. We hope you found them useful and should you have any questions, please do not hesitate to contact Robert or Ciarán at our office in the centre of Dublin.
Contrary to what many people might think, there are still significant numbers of people setting up new business ventures. For example, in the week ending March 30th, CRO statistics show that 335 Limited Companies were formed and 254 Business Names were registered. Whilst this is much less than was the case in, say 2007, it nonetheless indicates that there are many people out there who are either making the leap to self-employment or that there are self-employed people setting up new ventures.
It comes but once a year and no, it’s not Christmas! Yes, tax season is upon us once again. This is the time when all proprietary directors must file a form 11 by the 31st October 2010 for the tax period ending 31st December 2009. However, this is not just limited to proprietary directors! Anyone with additional income will need to file a tax return also. This includes rental income and even if you believe you have made a loss on the rental property, you must still file a return by the deadline. Also included are deposit interest and all worldwide incomes. So, if you have a U.S or European bank account accruing interest, you’ll need to make a return for this also.
Where Do I Start?
You can start today by sending us your contact details and a brief summary of your investments. We will return to you within a few hours. If you own investment property or possess high interest bank accounts, THE WORST THING YOU CAN DO IS NOTHING! Contact us today and give yourself peace of mind.
October 31st 2010 is the deadline for the self employed, Directors and people declaring other forms of income outside of PAYE, for example, Investment rental properties!
The reason why I’m writing this article is as follows, I have been a practicing accountant for over eight years and every year I am baffled by the amount of people that come to me in a panic on or around the 31st Oct, needing to complete their tax returns from the previous year. Yes, you read correctly, from the previous year!
This means that the 31st Oct 2010 is the deadline for all worldwide incomes to be declared to the Revenue Commissioners for the year ending 31st December 2009. Therefore, you have ten months to get your act together.