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Sole Trader Taxes

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  • 08-09-2012 7:51pm
    #1
    thecelt
    Registered Users Posts: 415 ✭✭


    I am trying to get an understanding of how much taxe(s) I would have to pay if I was to become self employed! Would appreciate any advice!
    Tagged:


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    #2
    barneystinson
    Registered Users Posts: 4,683 ✭✭✭barneystinson


    thecelt wrote: »
    I am trying to get an understanding of how much taxe(s) I would have to pay if I was to become self employed! Would appreciate any advice!

    My advice is that you actually ask a question or two, and then you might get some answers... ;)

    or alternatively I advise you to look over this and then start asking questions. http://www.revenue.ie/en/tax/it/leaflets/it10.html


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    #3
    Mongarra
    Registered Users Posts: 1,119 ✭✭✭Mongarra


    There are so many variables in the incomes of different businesses and in the personal circumstances of each individual that it is impossible to give a relatively short answer to the question.

    Remember that it is on the profits of the business that the various taxes and charges are calculated, not on the amount withdrawn from the business for personal expenditure ("wages" for the owner are not regarded as an expense).

    Income tax is payable at 20% up to €32,800 for an individual and 41% after that. PRSI is charged @ 4% with a minimum of €253 payable, and the Universal Social Charge (USC) is at 2% up to €10,036, 4% on the next €5,980 and 7% above that. If you are lucky enough to go over €100,000 then the rate is 10%.

    Spouse's income must also be taken into account for Income tax as this could affect the limit of the 20% rate (unless you opt for single assessment in which case you are treated as if you were not married).

    Expenses allowable as a deduction from Sales/Income vary according to circumstances (separate shop/office away from house or using house as base for business).

    Just a brief outline but impossible to be specific.


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