So you’ve formed your company and got your Certificate Of Incorporation. Bullet has put together so you’ll have everything you’ll need setup employees, claim grants and everything else. We looked for the quickest way to do these things with the least amount of work and put them in the order you should do them in.
Here are the key items you’ll get sorted.
- Register for all your taxes
- Get your tax clearance cert for grants
- Company Bank Account & what you’ll need to bring
- Register you and staff as employees
- Employees overview
- Vat overview
- Corporate tax returns overview
- B1 form & Annual Return overview
Remember Bullet automates all your tax returns so you can just focus on growth.
1) Register for Tax
To be able to pay your employees on the books and trade as a business you’ll need to register for all your taxes;
The TR2 form covers all this; Corporation Tax, PAYE/PRSI, VAT and RCT: http://www.revenue.ie/en/tax/vat/forms/formtr2.pdf
If you’ve already registered for your Corporation Tax and just want to register the company as an Employer then just fill out the PREM REG. from. It takes around 5 -10 days to go through
Registering with ROS (Revenue Online Services) is important as it makes filing all your returns that much simpler. When you click “Register for ROS” on revenue’s homepage you are led through a three step process, the process takes about 8 working days to go through and afterwards you will be issued with a Digital Certificate. Your Digital Certificate enables you to access ROS and utilise its full range of services.
In case you’re required to produce a Tax Clearance Certificate, i.e. to get a grant, you can;
- Apply online for a general tax clearance certificate; https://www.ros.ie/tcc/identification.jsp
- Or if you’re after one as a PAYE customer then use this form: https://www.ros.ie/tcc/identification.jsp
- Send the completed form to your Local Revenue District http://www.revenue.ie/en/contact/index.html
2) Setup a Bank Account
The company will need it’s own bank account as it’s a separate legal entity.
To set-up a bank account for the company you’ll need to present a copy of the Certificate of Incorporation and Memo & Articles of Association to the bank of your choice.
3) Register Employees
- You can register new employees directly with Revenue if you have their full name, PPSN and start date. Just phone or/email a Revenue Regional Office -for example Dublin City Centre is; 1890 333 425 or firstname.lastname@example.org. For all others see here; http://www.revenue.ie/en/contact/index.html
- You’ll have to decide a payroll period be it; weekly, fortnightly or monthly.
- For each payroll period you’ll need to calculate the taxes for it. Bullet Payroll software would do these calculations for you.
- Things are much simpler if you agree the gross pay with an employee rather than net pay. Meaning the gross pay is what an employee would get before and tax was taken off. If you do need to guarantee a minimum net pay, Bullet can calculate backwards for you!
Alternative Method for Registering new Employees:
- You’ll either need a completed Form 12A or P45 from them which you’ll have to forward to the local tax office.
- Complete and submit Form P45 part 3 to the employee’s Revenue office.
- If an employee has worked previously (in Ireland) but doesn’t provide you with a Form P45, you will have to complete a P46 Form or contact the tax office; providing details of the new employee’ name, PPS number, etc.
- New employees they will be taxed using the tax credits and cut off point on the P45 or on the emergency basis if no P45 has been received, until the Notice of Tax Credits and Cut-Off is received from the Revenue Commissioners
If you have an employee leave during the year then you will have to provide them with a P45. It shows the employee’s pay, tax and PRSI contributions within the tax year up to date of cessation. There are four parts to it, with the first being sent to the tax office and the other three being given to the employee.
Each month you’ll have to file a P30. This lists out the amount of PRSI/PAYE paid that month. If you file online then this return is filed on the 23rd of the month immediately following the income tax month during which the deductions were made, otherwise it would be on 14 days from the end of the income tax month.
At the end of each accounting year there’s a few things you need to do:
- Complete P35: Employer’s annual declaration and certificate for tax and PRSI purposes
- Fill in P35L Where the employer makes the return of PAYE and PRSI particulars in respect of each employee. There should be only one entry for each employee here.
- A form P35L/T would be used if you didn’t have an employees PPSN.
- Fill out Form P35LF. It’s used to record Total Taxable Benefits
- Theses forms have to be filed by February the 15th of the following year.
- You’ll have to provide your employees with a P60 Between the first of January and the fifteenth of February (if they were in your employment at the 31/12 of the previous year). This is a certificate showing Total Pay, Tax and PRSI contributions for the year ended on 31 December.
- Employer’s Guide to PAYE
- When you’ve registered with Revenue you’ll have to start making VAT Returns.
- These are done online through ROS on a VAT 3 Form. http://www.revenue.ie/en/tax/vat/vat3-return.pdf
- Revenue will let you know how often you have to pay, usually bimonthly.
- Once a year as well you’ll have to make a VAT RTD (Return on Trading Details), this basically splits out all the different rates of VAT from your invoices and Bills.
Corporate Tax Returns Overview
- This is the return you make to Revenue.
- Small start-up companies can get a three-year exemption on their corporation tax.
- You file your CT1 before nine months after your accounting year end.
- When you do pay your tax return you pay it nine months into your accounting year. Most Companies follow the Revenue Tax year for handiness (Jan 1st to Dec 31st)
- You then pay any outstanding balance for that when you file you CT1 for that year http://www.revenue.ie/en/tax/ct/forms/ct1.pdf
B1 Form Annual Return Overview
- This your return to the Company Registration Office. You have to also be aware that you don’t only have to file forms with Revenue. You also have to file a B1 form with the CRO (Company Registration Office). http://www.cro.ie/ena/annualreturn.aspx
- Like with Revenue they have an online service you can you use to do this called -CORE. https://www.core.ie/Main/register_iri.jsp
- The B1 is an annual return which shows certain company information. Thankfully there are no payments involved in this one.
- Like with other returns though there is a fee involved if you’re late filing.
- You file your first form within 6 months of incorporation without accounts and you do include them though in your next return 18 months after incorporation.
- You might want to claim an audit exemption. While there is no need for the accounts to be attached to the first return, a set of audited accounts will be required on subsequent returns if you don’t file for the exemption. So for the future while you do have to submit your accounts with your return, you would not have to endure the expense of employing an auditor. To get it all you have to do is tick a box for on it the B1 form
All these forms and dates are a pain to remember but Bullet helps automate them and for most cases allows you to upload them directly to where they need to be.
To qualify for this exemption you have to be able to satisfy the following:
- The company must be a Private Limited Company;
- The amount of turnover of the company must not exceed €8.8 million;
- The balance sheet total of the company is less than €4.4 million at the end of its financial year;
- The average number of employees must not exceed 50;
- The company must not be a parent company or a subsidiary company;
- The annual returns must be up to date, having never late when filed with the Companies Registration Office and have the abridged financial statements attached.
Bullet Formations Tool makes it quick and easy for you to set up a Company. Check it out here