Trade (Self employment)

 First thing first, is it trading income or an capital income? 


TRADING INCOME VS CAPITAL INCOME 

Subject Matter

Investment   ↔️ Intrinsic Value

Frequency of Transaction

Often  ↔️    Rare

Length of Ownership

Short  ↔️ Long

Supplementary Work & Marketing

Yes ↔️  No

Circumstances in which the Asset is realised

Schemed ↔️  Sudden

Profit Motive

Present ↔️ Absent


Now that's sorted, it's time for (Click expense or income for further details):

NET PROFIT                                                                    X
DISALLOWED EXPENSES                                             XNon Trade related expense i.e. personal
Not incurred in period
General Entertainment
Legal - Non Case I/II related or Capital
Leased Motor over €24k
Late tax payment interest
Excess of Staturory Redundancy payment once trade end
Special Accoutnacny or taxation cost i.e. re appeal hearing
Employer Pension Contribution accrual
Income tax drawing
Drawing
Trnasfer to general reserve
Depreciation
Loss on sale of asset
Improvement to premise and purchase of fixed asset
rental expense except for business premise
political and charitable donation

Less ALLOWED EXPENSES (if not included in account)              (X)Bad debt(taxable)
Increase or decrease in provision(taxable)
Entertaining staff
Replacement or redecoratino repair (back to original form)
Leased Motor vehicles under €24k and a extra bit from calculation
Staturory Redundancy payments and excess when in trade
Capital payment for know how (TBC)
Scientific research expenses (non capital or approved by minister of finance)
Premium on short leases (less than 50 years + calculation)
Interest on lease(not car)
Employer Pension Contribution (if for employee)

Less NON CASE I/II INCOME (that are included in account)      (X) III. Investment/ Foreign Income (Gross)
IV. Irish Deposit Interest
V. Rental Income (Irish property)

TAX ADJUSTED PROFITS                                             X

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