Registering your new Limited Company for Taxes

 

By Emilie Keogh, Keogh Accountancy Group. 24th November 2014 

Once your new company is registered and you receive your CRO Number you should immediately register the company for taxes with Revenue.  Companies are required by law to register for taxes and file returns online with Revenue.

The following are some of the types of taxes that a company can register for: 

  1. – Corporation Tax
  2. – Value Added Tax
  3. – Employers PAYE/PRSI
  4. – Relevant Contracts Tax 

 

Corporation Tax: 

 

This tax is charged on the company’s profits which include both income and chargeable gains.  There are two rates of Corporation Tax in Ireland:

 

  1. – 12.5% for trading income
  2. – 25% for non-trading income (i.e investment income, rental income)

 

Value Added Tax:

 

Value Added Tax is payable by taxable entities who engage in: 

  1. – They supply of goods
  2. – The supply of services 

 

The current VAT Rates are as follows: 

  1. – 23% for products and some services
  2. – 13.5% for other services (9% for certain goods and services)
  3. – 0% 

 

Companies are obliged by law to register for VAT if their turnover exceeds the thresholds set down by Revenue.  The threshold for the supply of goods is €75,000 and the threshold for the supply of services is €37,500.

From there on in a company will be obliged to file a VAT 3 (usually bi-monthly or quarterly) online to Revenue. 

 

Employers PAYE/PRSI:

 

All employees of the company will need to be registered and the appropriate tax credits allocated to the company tax number.  Employees can be registered online through the ROS System.  You will need a P45 from a previous employment or details of the new employee (name, address, PPS Number, commencement date) if no P45 is available.  Once an individual is registered by Revenue they can be seen on the company’s P2C (Revenues detailed information of employees and tax credits).

The company will then be liable to pay PAYE, PRSI & USC on all staff salaries paid to them.  The liability is paid by filing a P30 online (monthly, bi-monthly or quarterly).

If some staff fail to pay their LPT liability this will also be deducted from their wages.

  

Relevant Contracts Tax (RCT): 

 

RCT applies to payments made by a principal contractor to a subcontractor under a relevant contract (this is a contract to carry out or supply labour for the performance of relevant operations in the construction, forestry and meat processing industry). The company is obliged (if the principal contractor) to file the contract on the ROS system to Revenue.  Details included in the contract are as follows:

 

  1. – Name of Subcontractor
  2. – PPS Number
  3. – Address of Subcontractor
  4. – Location of the Work
  5. – Estimation of labour costs
  6. – Date of commencement
  7. – Date of completion

 

When a principal contractor (the company) then pays the subcontractor they need to file a payment notification on ROS Online to ensure there is no deduction of tax to be made to Revenue.

This payment notification should be file before any payment is made. All resident companies can be registered online through ROS. To register a company online  you will need the following details:

 

  1. – Company Name
  2. – Directors Names, Addresses and their PPS Numbers
  3. – Shareholdings Names and their PPS Number and state the shareholding
  4. – Company Registered Office
  5. – Company Address
  6. – Company CRO Number

 

In a situation where one of the directors does not hold a Irish PPS Number a paper TR2 will have to be completed and emailed/posted to Revenue. This form can be found online. You can then register for all relevant taxes that the company will be obliged to register for through ROS also. A company can opt to pay a monthly direct debit to Revenue for each tax. This can be done again through the ROS Online system through the company’s bank account.

 

Due Dates:

 

  1. VAT 3’s are due to be filed & paid online by the 23rd day of the next month the VAT period is over.
  2. P30’s are due to be filed & paid online by the 14th day of the next month the P30 period is over.
  3. Corporation Tax is due to be filed and paid online by the 21st day of the month 9 months after the companies year end.
  4. All RCT contract and payment notifications are due to be filed online when the contract commences and when the payment occurs.

 

This article is courtesy of Keogh Accountancy Group. Unit 6C Liosban Business Park, Tuam Road, Galway.  Phone: 091-778690. Email: info@accountancygalway.com

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