The Reporting Requirements if you are a Sole-Trader

The PHAFitness Education Centre

Sole-Trader? Check out this article and understand your reporting requirements.

By Paul H
11.3.2020

(This article relates specifically to sole traders, check out our separate article on the reporting requirements of limited companies)

Company Registration Office

As you are trading as yourself and not a company, you may not have any reporting requirements with the CRO. The exception being if you wish to register a separate business name under which you want to trade – for example Sean Doe but trading a Super Fit Fitness. This is done by filing an RBN when you start to trade and you will be required to update the CRO to any changes in these details.

Revenue Commissioners

VAT

VAT returns are normally filed every 2 months and include details of your vatable sales and expenses. The calculation is sent to Revenue along with any liability or details of a refund due – where your VAT liable expenses exceed your VAT liable income. While VAT can be complicated at the best of times this is exasperated in the health and fitness industry with a number of VAT rates in operation depending on the type of income you receive – classes, memberships, sale of good and apparel each attracting different rates.

At the end of each year you are required to file a Return of Trading Details (RTD) giving details of all sales and purchases during the year and their relevant VAT rates.

Payroll (formally P30)

If you are paying anyone, excluding yourself, you are required to deduct, file details of and pay any income tax deductions due to be made against income on a monthly basis. The return is due each month but for some sole traders depending on their size, they can make payments every 1, 3 or even 4 months. You are required to file a return each month with Revenue on or about the day of salary payment.

Income tax

As a sole trader, you will be required to file an income tax return each year, normally before the end of October each year. This gives detail of your trading income, expenditure and any other non-trading income that is liable to income tax along with the calculation of your income tax liability.

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