I’m not paying taxes on money that’s not in the bank, right?

This was a question from a client and highlights an area commonly assumed by accountants to be understood by their clients. It’s reasonable to assume that a business (limited company or sole-trade/partnership) is taxed only on the cash actually received. After all it’s hardly fair to be taxed on sales which are never paid for,…

Continue Reading →

Is it time to scrap corporation tax?

The tax planning activities of several well known multi-national companies have been in the spotlight recently. At a time when most of us are feeling the strains of austerity these companies apparently have some sort of immunity. Various governments (UK and US in particular) have hauled some of these companies in front of parliamentary committees…

Continue Reading →

So what’s REALLY in Budget 2013 for small business

It was refreshing to finally hear the Minister for Finance focus on Small & Medium Enterprises (SMEs) in Budget 2013.  For too long, in my opinion, the emphasis of successive administrations has been on foreign multinationals and exporting indigenous businesses.  While that sector should be nurtured it shouldn’t be done at the expense of the nuts and bolts of…

Continue Reading →

Business entertainment expenses – can I get a tax deduction for that?

ID-10066384

entertainmImage courtesy of Ambro FreeDigitalPhotos.net Business entertainment expenses extend beyond the staff party: there’s client entertainment to consider    I want to thank my best customers for their continued loyalty by inviting them out for drinks.  Is this a tax deductible expense? In a word, no, it’s not.  Expenditure on client entertainment is specifically disallowed from calculating taxable profits…

Continue Reading →

Help!!! I can’t pay my taxes!

Many businesses are finding it difficult to make ends meet and pay their creditors when they fall due. Arguably, one of the most feared creditors of businesses is Revenue. Why? Substantial interest, penalties, surcharges and potential fines and prosecution if you get it wrong. In extreme cases Revenue can place an “attachment order” on your…

Continue Reading →

Are your business expenses exclusive?

Getting your head around deductible expenses for tax purposes It’s getting round to that time of year again were small business owners are seriously thinking (perhaps panicking!) about getting their tax returns completed. There always seems to be an increase in inquiries around this time, extending to late October, about what deductible expenses for tax…

Continue Reading →

Changing from a soletrade to a limited company

Changing from a soletrade to a limited company Many people start out in business as a soletrader and once the business is off the ground “graduate” to a limited company. There are various reasons for changing from a soletrade to limited company, some real, some perceived: To avail of lower tax rates Protection of limited…

Continue Reading →

Starting a business: sole-trade vs limited company

One of the most important decisions to be made when starting a business is what legal structure to adopt: sole-trade/partnership or limited company? Both have advantages and disadvantages. Each business’s circumstances must be examined in its own right as what may suit one set of circumstances may not suit the next. Firstly we must explain…

Continue Reading →

Calculating your profit for tax purposes

When calculating your profit (or loss) for tax purposes you must be aware that your business expenditure falls into 1 of 2 categories: “allowed” and “disallowed”. This is not an exhaustive analysis but a brief overview of the basic concepts that can cause most difficulty. Capital expenditure Any equipment you buy should go into your…

Continue Reading →

Start-up companies – corporation tax exemption

The exemption from corporation for start-up companies was first introduced for new businesses incorporated and commencing trade in 2009. This was extended to 2010 and Finance Act 2011 extended it further into 2011 (with some significant changes). The original scheme granted an exemption of up to €40,000 from corporation tax for the first 3 years…

Continue Reading →