Small Business Advice
If you need a tool to help you with your social media content, particularly on Instagram you should try Canva.com. It is a graphic design tool which is free to use. It can help improve your social media content greatly and give it more of a professional look. They also have plenty of premade templates which you can use and edit. As part of a podcast we also run, Canva was the number one tool recommended among small business owners.
If you are self-employed you will be aware you are due to complete your annual return for 2019 which is now due by December 10th. You will be required to pay taxes due for 2019 and preliminary taxes for 2020.
Paschal Donohoe announced a range of measures to help small and medium businesses. One of which is extending debt warehousing to the self-employed. If you expect your 2020 income to be at least 25% less than 2019 then you can apply. This means you can defer your 2019 tax payment and your 2020 preliminary tax payment for 12 months. (source)
However, if there is an underpayment of preliminary tax for 2019 then this can not be warehoused. It can however avail of a 3% reduced interest phased payment arrangement. This needs to be agreed with revenue by December 10th.
Revenue have confirmed applicants have until the 10th of December to avail of the scheme. The scheme is also open to landlords. (source)
Dave Fitzpatrick of The Lotts Cafe Bar shares his experience of being a publican during COVID. He talks about how his business and his life has been impacted by COVID. He discusses the level of support being offered by the government and the his opinion on insurance companies.
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The first regulations which existed under the privacy legislation in 2011, Privacy and Electronic Communications Regulations.
Later this was updated in 2018 under GDPR. GDPR clearly states that people must give their consent for websites to use cookies. A recent survey by the DPC had found most businesses were not compliant with this law. (source)
Cookies are text files stored on your computer which allow websites to do several things such as track users, remember user information and preferences and track user behaviour. Cookies can be controlled by the owner of the website or by third parties.
For example, an owner of a website can install a facebook pixel. This allows the owner of the website to add you to an audience of people they advertise to. If you visit a website which sells garden furniture, the next time you log into facebook you could see advertisements for garden furniture for the same website.
This means that all visitors to your website must give their consent to you using cookies. When they arrive on your website they must actively click on “Accept” in order for you to use cookies.
If you have a wordpress website there is a simple solution. There is a free GDPR Cookies Consent plugin which you can install. This will prompt the user to accept your cookie policy when they arrive on your website.
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If you would like more detailed information on the issue then you can read the guidance set out by the DPC.
Being self-employed is a very common legal structure used in Ireland to operate a business. In 2020, self-employed people accounted for 14.75% of all of those employed in Ireland.
The registration process for being self-employed is very simple and can be done through ROS.ie. There are a number of benefits of being self-employed, particularly if you are already an employee through the PAYE system. One of the biggest is being able to offset your self-employed losses against your employee income. It’s also very easy to stop being self employed. This can be done through ROS.ie.
You do not need to register as being self-employed if your non PAYE income is less than €5,000 and your PAYE income is less than €30,000.
To register as being self-employed in Ireland you simply register on ROS.ie. For this you will need a PPS number. Go to ROS.ie and click on “Register for ROS” and then “Apply for your RAN”.
On the next screen select “An individual or company” and from the drop select “Income Tax”. Enter your PPS number in the “Registration Number” field. Complete the rest of the steps as indicated.
There are a number of benefits of being self-employed in Ireland:
Here is a list (which is not exhaustive) of the expenses you can claim in Ireland if you are self-employed. We’ve tried to focus on some of the more obscure items. In general, any cost which arises as a result of engaging in business can be expensed.
There are a few exceptions which are not so obvious.
To stop being self-employed is relatively straight forward if you don’t have a complex business. You simply log onto ROS.ie, go to “Other services” and click “Manage Tax Registrations”. From here you can click on “Cease Registration” for Income Tax.
If you have registered for VAT you’ll also need to cancel this. You will also need to complete any outstanding returns.
If you don’t have access to ROS.ie you’ll need to complete a TRCN1.
Being a sole trader is a popular option for a lot of entrepreneurs because it is a very easy structure to set up. A sole trader and being self-employed are essentially the same thing.
You are not required to produce a set of accounts although you are required to complete a self-assessment each year.
A sole trader gives you the option to test your business idea without being overburdened with returns or high accounting fees. If your business idea is successful and starts generating revenue you can switch to a limited company at any time.
This article will cover:
Firstly, be careful when getting advice on your business structure. Some accountants will tell you to set up a limited company when it isn’t necessary. In some cases it is because accounting fees are higher for a limited than a sole trader.
You should be a sole trader in the following circumstances:
We’ve written an article on a limited company vs a sole trader.
You should set up your business structure as a limited company in the following circumstances:
To register as a sole trader you need a PPS number. You can register on ROS.ie or you can for you can complete a form TR1.
If you want to stop being a sole trader you follow a similar process. You log into ROS.ie and click on “Other Services”. Click on “Manage Tax Registrations” then click on “Cease Registration” for Income tax and complete the form on the next page.
At a minimum you need to complete a self-assessment form. If you have a simple business you can complete it yourself. However, if it is too complex you will need to hire an accountant who can charge fees of €750 + VAT.
Depending on your level of sales you may also need to register for VAT. Generally this needs to be completed every 2 months. This can be as low as every 6 months if your VAT liability is less than €3,000.
You need to register for VAT if your sales is above the following:
As a sole trader you can not expense your salary. The profit that is remaining is taxed at PAYE rates of 20% (€35,300) , 40% (above €35,300) plus PRSI & USC. You are entitled to a tax credit €1,500 for being self-employed (v employee of €1,650). The deadline for filing your self-assessment return is October 31st.
As mentioned above, if you are registered for VAT you’ll also need to pay that every 2 months.
In Ireland you can be both an employee and a sole trader. When you complete your self-assessment you enter your income from your employment and your income or losses from your sole trader business.
The benefit of being a sole trader and an employee is you can offset your losses from being a sole trader against your PAYE income.
As a sole trader you can expense a percentage of your rent, heating, internet and electricity if you are working from home on your business.
