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Tax, Vat, Insurance ,etc
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Hi All..
Im just trying to get the math done… Im trying to work it out what do I need to understand the expenses and income in wedding/ portrait photography business.I earn income as a photographer (weddings and portraits) and also retouching other photographers work.What do I need to for my wedding/ portrait photography and retouching business?
CRO – Company name
Income Tax
what is this – PRSI?
Vat (Should I apply for it or wait till over 34k Income?)
Life/health Insurance (Best place to go to?)
Camera/Studio/Equipment Insurance (Best place to go to?)
Anything else?johnnycorcoran wrote:
Hi All..
Im just trying to get the math done… Im trying to work it out what do I need to understand the expenses and income in wedding/ portrait photography business.I earn income as a photographer (weddings and portraits) and also retouching other photographers work.What do I need to for my wedding/ portrait photography and retouching business?
CRO – Company name
Income Tax
what is this – PRSI?
Vat (Should I apply for it or wait till over 34k Income?)
Life/health Insurance (Best place to go to?)
Camera/Studio/Equipment Insurance (Best place to go to?)
Anything else?Since nobody else has posted anything, here are some thoughts which may be of help.
The first point in my view is to make a realistic assessment about how much you expect to earn, and also whether you will be working on your own, or expect to employ anyone else (note that having an assistant working for a fee on an ad-hoc basis is not the same as being an employee). The answer to these questions will influence some of the other points.
If it is just you, and you don’t expect to earn more than €37,500 pa, then I would suggest you don’t bother registering a company – rather just register a business name to give you a business identity. If you don’t exceed €37.5k earnings then you don’t need to register for VAT (but will of course have to pay VAT on any purchases), and since you won’t have employees, you don’t need to register as an employer. All of that makes life a lot simpler. What you then do is complete the “Trade or Profession” section of your annual income tax return – this is in essence a summary of your business accounts. So you need to keep a good record of everything going in and out. I use a spreadsheet to track everything and produce a summary in the form required for the annual return, but the alternatives are to use an accountant, or get some suitable software. Remember that you pay income tax on your profits, not on the amount you take out of the business. It is also important to keep your business affairs and your personal affairs separate.
I would also suggest you take out insurance as a professional photographer, covering in particular cover for your equipment and public liability. You may not need life insurance if you have that on a personal basis – but also consider whether you need business continuance cover e.g. what happens if you can’t work for say 6 months – will you need something to tide you over.
Going back to my original assumptions, if your income exceeds the VAT threshold, and/or you employ people, then it probably makes sense to register as a company, but that involves a lot more paperwork and complexity (I’ve set up and run several companies over the years, so I’ve worked both ways.)
HTH
Some brief points on your questions – but it looks to me that an initial talk to an accountant would be useful to put you on the right track (and I’m not an accountant – so bear this in mind when reading my answers).
If you are not trading as exactly your own name, then you must register a business name with the CRO – this is a simple and cheap process – and is mainly done online via their website.
If you are below the VAT threshold, then you do not have to register for VAT. My opinion is that if your customers are mainly businesses (and can therefore reclaim VAT) you might be better off registering voluntarily. Otherwise wait until you hit the threshold.
Not many photographers set up a company for their business – if you are considering this, then you need professional advice first. It imposes a lot of extra accounting and bookeeping requirements, so make sure you have a good reason to do it.
You need to register with the Revenue Commissioners for Income tax purposes.
PRSI is charged at a lower rate for the self-employed (but you get few or no benefits in return). There is a fixed minimum charge if the income involved is low. Health levy is also due.
Some info on vat discussed here: freelance-information-required-t38671.html
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