Taxation

Having Burdy Bookkeeping & Payroll as your bookkeepers from the start of your business journey will mean your business is set-up and registered for the correct tax.

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Our taxation services include:

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Income tax returns

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Preliminary Tax Compliance

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Rental accounts

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Director’s Annual Income Tax Returns

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Relevant contracts tax returns

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VAT / VAT RTD Returns

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Employers tax returns

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VIES / Intrastat / VAT OSS

Taxation in Ireland

Paying some form of tax is a certainty when operating a business in Ireland. Sole Traders and Limited Companies are legally required to pay tax.

There are four main taxes in Ireland: Corporation Tax/Income Tax, Value Added Tax (VAT) and Employers Taxes – Pay As You Earn (PAYE).

All of these taxes apply to Irish limited companies depending on what activities your company carries out. Corporation Tax is a compulsory tax for all limited companies in Ireland. However, Sole Traders don’t register for Corporation Tax, only Income Tax.

Before you employ staff, you need to register for Employers PAYE and there are certain criteria you need to meet before you apply for VAT registration.

Having Burdy Bookkeeping & Payroll as your bookkeepers from the start of your business journey will mean your business is set-up and registered for the correct tax. We will also file your correct tax returns at the end of the year. If you need help with your tax situation, please get in touch with a member of our team and we can talk you through the services you need to get your business off the ground.

You can call us on 045 909738 or email info@burdy.ie. We’re here to help and happy to answer any questions you have!

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Corporation Tax

The Corporation Tax in Ireland is 12.5% which is low when you compare it to other countries in the EU. Companies who incorporate and are centrally controlled and managed in Ireland can qualify for the 12.5% tax. The company must have activity in the state in order to be centrally controlled and managed in Ireland.

As previously mentioned, Sole Traders don’t pay Corporation Tax. Instead, they file their Income Tax returns at the end of the year. Corporation Tax is the tax on all profits after expenses in a company, whereas Sole Traders are required to pay Income Tax of up to 40% on their profits depending on their level of income.

Corporation Tax Deadline

Once you have registered for Corporation Tax, you need to take note of your Corporation Tax deadline. In Ireland, your Corporation Tax return is due to be filed nine months after the end of the accounting period and before the 21st of that month.

All filings must be paid and filed electronically online through your company’s Revenue Online System (ROS). Need help preparing and filing your Corporation Tax / Income tax return? Contact us now.

What is Value Added Tax (VAT) and when should you file your returns?

VAT is a tax that is mandatory for Limited Companies, Sole Traders and most Subcontractors operating RCT. It can be complex and if you are engaged with the supply of goods or services to or from the EU or the UK there are additional reporting requirements that must be adhered to in order to avoid Revenue penalties.

Once you complete VAT registration in Ireland, you are required to charge VAT on the products and services that you sell subject to thresholds and the VAT rates specific to the good or service. You also need to file VAT returns, usually bi-monthly.

Here at Premier Account Assist, we recommend you speak to us if you have any questions about VAT registration or filing VAT returns in Ireland. Our team is always happy to talk you through our services so you can be assured you have expert support and guidance for your new business.

We also offer practical and advanced VAT courses developed by business professionals with 20 years industry experience.

PAYE (Pay as you earn)

If you would like to hire an employee for your business, you must register for employers PAYE tax. This applies to both Sole Traders and Limited Companies.

You can register for PAYE with Revenue or why not let us take care of this? You may consider outsourcing because when you employ staff, you are also required to run a payroll system and use Revenue’s PAYE modernisation system.

As stated in our payroll guide, employers are required to:

Pay your employees’ wages or salaries.
Calculate their benefits such as holiday pay, sick leave, insurance and retirement.
Deduct taxes on behalf of the state government.
Pay all payroll taxes (Including some you owe as an employer)
Filing reports to show that you’re doing all these things correctly.
Let us take care of your payroll while you work on growing your business.

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Preliminary Tax

Preliminary tax is your estimate of the Income Tax, PRSI & USC that you expect to pay for a tax year. Sole Traders must pay this by 31st October of the tax year in question.

As well as paying the tax you owe for the previous year, you are also required to pay preliminary tax for the upcoming year. And this is on top of the current tax liability.

Small companies must pay their preliminary tax in one instalment if they have a CT liability of less than €200,000 in their previous accounting period.

Preliminary tax can be a tricky subject, especially when you consider late payments will incur interest to be paid per day the deadline is missed. Having a qualified tax technician to look after your tax returns is a good way to ensure that your tax returns are done properly and on time.