Tax is a critical consideration for all businesses, regardless of nature and size. If you have a business, you need the expertise of accountants to provide you with taxation services and advice. With sound advice, proper planning and strategic execution, you can expect tax exemptions and relief, which amounts to cash benefits for your business. Likewise, you can avoid tax issues and liabilities, which are inconvenient and costly on your part. Understand that the simple mistake of missing a filing deadline can already make a huge impact on the flow of your operations. Tips For Hiring A Tax Accountant
For the most part, your business is taxed based on how it was formed. A company is basically liable or subject to what is called corporation tax. Corporation tax is charged on all profits arising from the business operations. Trading income is taxed at 12.5% whilst non-trading income is taxed at 25%. Consult with your trusted tax accountants to learn more about applicable taxation rates for your business. Computing exact taxes up to the last penny can be a complex process when other factors are involved such as when the rate changes during an accounting period. Also, you must factor in expenses that can be set against your profits and thus result in tax deduction.
If you are a new start-up company, you might be eligible to tax exemption for the first three years of operation. There is an extension to this tax relief granted to newly start-ups that commenced trade in 2011. Your hired accountants can assist you with updates and changes to the Irish taxation law. Additional tax relief is granted if you are a start-up company with employed people. Starting from 2011, the amount of tax relief is based on the amount of Pay Related Social Insurance or PRSI you pay within an accounting period, capped at EUR5, 000 per employee. An accounting period is the period within which your business makes up your annual accounts; it should not exceed 12 months.
On the other end,if your business is not incorporated and you are operating as a sole trader, you are subject to personal taxation. If you are running a small business as a sole trader, profiting from rent, investment income, foreign income and similar incomes, you are to pay and file your tax returns on a specific filing date.To ease your burden of computing business taxes, filing returns and paying taxes on time, it’s best that you hire tax accountants whether you are a sole trader or a company.