Sole Trader Expenses Q

wip3out

Hi there, could somebody tell me (or joint me in the right direction) with regards to expenses for a sole trader. Recently set up a small contracting setup earning 3k~ a year on the side.

I find it hard to get decent information (all very vague stuff on google and even on revenue.ie) regarding how much of an expense can be claimed back? I don't have an accounting background I must add but whats the bottom line? I appreciate expenses must be solely for the business etc but is it the tax on it that I claim back or what?

apologies if this is a silly question but my googling has not given me any decent results and I'm just trying to get a picture in my head going forward.

eusap

If you earn 3k Gross income and spend 1k on valid expenses, your net income will be 2k and you pay income tax on the 2k.

The point about valid expenses, you will need to check and will depend on your business.

Some Examples:
1. Claiming Milage is not valid if you work remotely and don't visit the client.
2. Claiming your whole Light and Heat bill when you work 5 hours per month as a contractor but you could claim a reasonable portion etc....

Best get a good accountant

wip3out

thank you eusap!

Umiq88

I thought you could earn 3k a year with declaring it?

Stratvs

Umiq88 wrote: »

I thought you could earn 3k a year with declaring it?

Assuming you meant "without declaring it", nope.

https://www.revenue.ie/en/additional-incomes/is-your-extra-income-taxable/index.aspx