An accounting app for a tradesman in Ireland

Payment terms written on the invoice, such as fourteen days, make it easier to follow up.

The sooner an invoice goes out, the sooner it is paid. Create it on your phone with the customer, the work, the materials and the VAT, and send it before you leave the site. HelloBooks tracks what is unpaid and can send payment reminders, so chasing does not depend on your memory.

Building and construction services on private dwellings are at the 13.5% reduced rate, subject to the two-thirds rule. If the goods used in a job cost more than two-thirds of the total price, the rate for the goods applies to the entire job instead. Most repair and installation jobs sit at 13.5%, but jobs heavy on supplied equipment need a second look.

When you work for a main contractor on a job within Relevant Contracts Tax, the main contractor deducts RCT at 0%, 20% or 35% from your payments and accounts for the VAT under the reverse charge. Your invoice carries no VAT. Record the gross payment and the RCT deducted, which you can see in ROS, so your books agree with Revenue’s records.

Trade counters print dockets that fade within months.

Materials are a large share of your costs and the VAT on them is reclaimable if you are registered and hold proper invoices. Photograph the docket at the counter or forward the email invoice; HelloBooks reads it and matches it to the card payment, so nothing is lost before the VAT return.

Trades often supply both labour and materials, so which VAT registration threshold applies depends on the mix. Revenue’s registration pages explain how to treat mixed supplies. Keep a running total of sales in HelloBooks and talk to your accountant before you near either threshold.

Many tradespeople use one van for work and, now and then, for personal trips.

Code the van, fuel, tools and protective gear to separate accounts. VAT recovery on some vehicle costs is restricted, so your accountant may adjust these, but clean coding makes the adjustment quick and the year-end cheaper.