Your First Tax Return And How To Submit It

Your first tax return

Are you filing your first tax return as a business owner?

As a new business, when do I need to file my tax return?  

As a sole trader, you are responsible for your tax since the first day you started trading. Though you do not need to file your tax return and pay your tax until October of the following year. This is because of the self-assessment system which only allows you to file in the following year.  

i.e., if you started trading in April 2022, you are not due to submit your tax return and pay the taxes until October 2023. 

However, you should always be prepared, for your first tax return and if you follow the tips below, then Tax Return Plus will have your tax return filed before the deadline day on the 31st of October. 

What do I need for my first tax return?  

Remember, you are liable for your businesses tax from the first day you started trading.  

  • You need to keep a record of all transactions in and out of the business
  • All sales invoices for the year
  • All purchasing invoices for the year
  • Bank statements/credit card statements for your business account

You can also claim for expenses that are wholly and exclusively related to the business such as: 

  • Rent & bills for your business premises
  • Running costs/Lease payments of commercial vehicles in use for your business
  • Accountancy fees
  • Goods you buy for resale
  • Expenses for the setup of your business e.g., the cost of business plans etc.

Expenses that cannot be claimed for are: 

  • Personal mileage expenses
  • Food expenses
  • Accommodation (unless for a business which there is an allowable deduction)
  • Client entertainment

If you are at an expense for something that is used for both personal and business purposes, e.g., phone bills, cars, rent. You must work out what percentage of the use is for business only purposes and you can then claim a deduction for this.  

Tax Credits 

Every year, thousands of Euros goes unclaimed by people who are not aware of additional tax reliefs they can claim for. Tax credits can help you to reduce your tax liability or even obtain a refund. They are dependent on your personal circumstances. e.g., if you are married and your spouse works part-time or is a full-time stay-at-home parent then you can claim the Home Carer Tax Credit which could potentially save you €1,600 per year.  

How to file my first tax return? 

As a new business startup, you will have many tasks including taxes. Tax Return Plus can assist in all aspects of your taxes. To get a quote, visit www.taxreturnplus.ie or if you would like more information, email our team at info@taxreturnplus.ie All we need you to do then, is send us in your information for the previous year, and we will do the rest! 

What date do I need to file by? 

Your tax return is not due until the 31st of October of the following year as explained above. If your file is submitted late but within two months of the deadline, Revenue impose a surcharge of 5%. If the tax return is not filed within two months of the deadline, the surcharge imposed by Revenue will increase from 5% to 10%. 

NOTE: Revenue do extend the filing deadline by a number of days for those taxpayers who submit their file online.