Bullet’s Smarter Startups Start Guide

All Business Relationships End, Whether It’s An Exit, Illness Or A Falling Out. What’s Your Plan?

Cillian Balfe – Lawyer

– DOWNLOAD – 

Bullet’s Smarter Startups Start Guide Checklist

– Exact points that need to be done

– Find out if you haven’t forgot anything 

– Remove risk of starting with mistakes

Quick Over View From Peter

 

Value Added Tax

VAT is worked out by subtracting the VAT you pay for goods or services and the VAT you charge to customers. The VAT3 form is used to pay the company’s VAT and is uploaded to the ROS website, and they tell you how often you have to pay it! VAT is charged at different rates depending on the type of business you are.

P30

P30 is the form used to pay tax on all payroll related payments such as PAYE, PRSI, and USC, and is paid to the Revenue via the ROS website.

The periods for P30s are every month or 3 months, starting from the 1st of January!

B1

A B1 form is an annual return to the Company Registration Office, submitted via their system CORE. No payments are made with this return and you must make a B1 return to the CRO at the end of your first 6 months of business since registration.

P35L

P35L is a form used to give the Revenue a summary of all your employees’ details over the year – all the p30’s for the year! The return needs to be made on the ROS website on the 15th February every year, and payments are only necessary if your P30 payments aren’t up to date.

CT1

‘Everyone has a plan till you get a punch in the face’. Losing your co-founder feels like that. Over the past decade, I’ve started a good few businesses, some more serious than others.

Starting a business can be quite impulsive and tends to draw optimistic people together, which maybe isn’t a great recipe for pre-planning. But, over that time I built a simple pattern for spotting types of co-founders.

In this post, we’ll learn about my experiences with 3 types of co-founders, the good, the bad and the ugly. How you can avoid the ugly, and find the good.

Ultimately all relationships end, whether that’s an exit or a fallout. I’ll show you what I did with each real-world situation, and how you can be smarter about it.

We’ll hear from my solicitor who advised on some of the exits. He’ll give his experience dealing with a lot of company breakups.

Also an interview with my co-founder of Bullet and how we managed our split to remain friends and work buddies.

I’ve put together a simple founder’s workbook I think every team should fill out, it starts a good framework before the high fives stop.

Take Away:

– Founders can be grouped into the good, the bad, the ugly. Avoid the latter.

– A little pre-planning will help you find the right partner and save a lot of heart-ache.

What you’ll get from this

Ok, so you’ve formed your company and got your certificate of incorporation. Bullet has put together this document together will so you’ll have everything you’ll need setup employees, claim grants and everything else. We’ve looked for the quickest way to do this with the least amount of work and in the order, you should do it in.
Here are the key points items you’ll get sorted.

  • Register for all your taxes, get your tax clearance cert for
    Grants
  • 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
  • FAQ’s

Remember Bullet automates all your tax returns so you can just focus on growth.

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, RCT

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.
http://www.ros.ie/PublisherServlet/info/setupnewcust

In case you’re required to produce a Tax Clearance Certificate, i.e. get a grant, you can;

Setup a Bank Account

The company will need its own bank account as it’s 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.

Register Employees

For registering new employees

  • You can register new employees directly with Revenue if you have their full name, PPSN and start date
  • Your phone/e-mail a Revenue Regional Office – for example, Dublin City Centre is; 1890 333 425 or citycentrepaye@revenue.ie. For all others see here;
  • 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. Payroll software would do these calculations for you.
  • Things are much simpler if you agree on 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.

Employees Overview

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 the 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 a couple of 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.
  • The 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

  • These 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 – 1890 25 45 65 or employerhelp@revenue.ie

Vat Overview

  • When you’ve registered with Revenue you’ll have to start making VAT Returns. These are done online through ROS on a VAT 3
  • Revenue will let you know how often you have to pay e.g. bi-monthly.
  • 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. http://www.revenue.ie/en/tax/vat/vat-returning-trading-details-sample.pdf

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. 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/annual – return.aspx
  • Like with Revenue they have an online service you can you use to do this – 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 account 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.

FAQs

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.
  • For 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

Audit Exemption

  • 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.

That’s all folks

Well that’s a wrap on that. We’ve tried to make the post setup as simple as possible. If your head is still melted don’t worry Bullet is the only accounting and payroll product to focus on growth-focused startups by automating all your accounting returns and focusing you on what you should be focused on, growth.

One of our Growth Specialists will be in touch to help you leverage the 100,000 euro available to you through the Irish Government grant scheme. They’ll also show you how to leverage the tax system to allow you pay for a sales guy.

We hope that helps you some what don’t forget to tweet this out under the hashtag #bullethq, or post on Linkedin and let you’re fellow founders know about it. Our blog is full of early stage startup growth tips.

Thanks

Pete & John

If you have any further questions on influencer marketing or using this influencer scorecard please put it in the comments below. They’ll all get answered by me. Thanks again
Hi, I’m Pete These Are My Stories To Help You
I help online entrepreneurs love their life again. I do this by building software and teaching complex strategies in simple, step-by-step ways.

I’ve tried almost every business model out there, most have been in online business space from RaboDirect to Bullet, a free automated online accounting software.

Now, as a founder, I’ve helped more than 8,000 businesses grow. We launched a working version of Bullet with just €1,400.

It wasn’t always going so well. It took me years to get things off the ground. To learn about systems and how best to work them to my advantage.

In that time I’ve seen ‘unicorn’, companies come and go, I’ve seen nobody heard of bootstrapped companies explode with success.

I’m looking forward to sharing what I’ve learned and bringing experts in their fields together to help you save time, money and most of off all allow you to focus and succeed in your business.

"Every relationship is going to end, for the good or bad. Just plan for it."

” Cillian Balfe – Lawyer & Partner 

Next In The Series

MORE FREE ACTIONABLE LEARNING FOR YOU TO IMPROVE YOUR BUSINESS

Irish Government Small Business Grants Guide
Irish Government Small Business Grants Guide
Irish Government Small Business Grants Guide

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