We specialise in providing comprehensive tax advice and services for small business owners. We help you understand complex Irish tax laws and ensure compliance.
Services Provided
Benefits of Working With Us
- Tax Residency Status: Determine your tax residency status and its implications.
- Income Tax Reporting: Assistance with reporting foreign and dual residency income. This includes preparing the annual Form 11 tax return, supporting computations and liaising with the Revenue Commissioners to assist you with settling the resulting tax liability.
- Estimating your Preliminary Tax Obligations: We understand the importance of being able to plan for your tax liability. We will help you estimate, plan for and pay your annual preliminary tax liability.
- Understanding Tax Deductions: We will ensure you claim all available reliefs and deductions to minimise your tax bill where possible.
- Double Taxation Relief: Guidance on claiming relief under Double Taxation Agreements.
- Social Security and Pensions: Advice on contributions and entitlements across countries.
- Expertise in Expat Taxes: Specialised knowledge in handling tax issues for expats.
- Personalised Advice: Tailored tax strategies to optimise your financial situation.
- Comprehensive Support: From filing returns to planning future tax obligations.
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How It Works
Common Challenges Addressed
- Initial Consultation: Discuss your specific needs and circumstances.
- Assessment: Evaluate your tax status and obligations.
- Strategy Development: Create a tailored tax plan.
- Implementation: Assist with filing and compliance.
- Ongoing Support: Provide continuous advice and updates on tax laws.
- Not knowing when to register for VAT
- Not managing preliminary tax obligations
- Not understanding how and when to register for income tax
Frequently Asked Questions
When do I need to register for income tax as a sole trader?
As a sole trader in Ireland, you need to register for income tax when you start your business activities.
Here’s a step-by-step guide:
Starting Business Activities: Once you begin trading or have any business-related income, you should register with the Revenue Commissioners for income tax purposes.
Registering with Revenue: You can register for income tax through the Revenue Online Service (ROS) or by completing the TR1 form (Tax Registration form for Sole Traders, Partnerships, Trusts, and Unincorporated Bodies).
ROS: Registering online via ROS is the preferred method. If you don’t already have a ROS account, you will need to create one. Your tax agent can complete this for you and engage with Revenue on your behalf with your approval.
TR1 Form: Alternatively, you can complete and submit the TR1 form by post. This form is available on the Revenue website.
Deadline: You can also complete and submit the TR1 form by post. It: It is important to register promptly after starting your business to ensure you comply with tax regulations and avoid any potential penalties. Ideally, this should be done within a few weeks of commencing business operations.
Obligations Post-Registration: After registering, you will be required to file an annual self-assessment tax return using Form 11 by October 31st of the following year. If you use ROS, you have until mid-November to file and settle your tax liability online.
What taxes do I need to pay as a sole trader in Ireland?
As a sole trader in Ireland, you will need to pay the following taxes:
Income Tax on Profits:
Calculation: You will be taxed on your net business profits, which is your gross income minus allowable business expenses. In other words your business expenses must be directly related to the business activity you engage in to be deductible.
Rates: The income tax rates for sole traders are progressive, meaning they increase as your income increases.
As of 2024, the rates are:
– 20% on the first €42,000 of taxable income.
– 40% on income above €42,000.
Filing: You need to file a self-assessment tax return (Form 11) annually by October 31st of the following year. If you file online using ROS, you have until mid-November.
Universal Social Charge (USC):
Rates: The USC is a separate tax levied on your gross income, with different rates depending on your income level.
As of 2024, the rates are:
– 0.5% on the first €12,012.
– 2% on income from €12,012.01 to €25,760
– 4.5% on income from €25,760 to €70,044
– 8% on income above €70,044.
Pay Related Social Insurance (PRSI):
Rates: elf-employed individuals generally must pay Class S PRSI contributions at a rate of 4% on all income above €5,000.
Minimum Contribution: If you earn less than €5,000 from self-employment in a year, you are exempt from PRSI, but you may pay €500 as a voluntary contributor (if you meet the other conditions). From 1 October 2024, the minimum contribution will increase by €150 to €650.
Value Added Tax (VAT) (if over the threshold):
Thresholds: You must register for VAT if your annual turnover exceeds:
€40,000 for services.
€80,000 for goods.
Rates: The standard VAT rate in Ireland is 23%, but different rates may apply depending on the nature of the goods or services you provide.
Filing: You will need to file VAT returns periodically (usually bi-monthly or quarterly) and remit the VAT collected to Revenue.
Preliminary Tax:
Obligation: You are required to pay preliminary tax, which is your estimate of the income tax, USC, and PRSI due for the current tax year.
Deadline: This payment is due by October 31st of the current tax year. If you underpay, interest and penalties may apply.
Other Considerations:
Local Property Tax (LPT): If you own property, you may need to pay LPT annually.
Other Levies: Depending on your business activities, there might be other sector-specific taxes or levies.
