A sole trader is someone who runs their own business as an individual and is legally responsible for the business. It’s one of the most common ways to start a business in Ireland. As a sole trader, there’s no legal distinction between you and the business. This means that you are personally responsible for filing your tax return and any debts that you may incur.

To register as a sole trader in Ireland, you need to…

1. Register as a Sole Trader with Revenue.
2. If you’re using a business name (i.e., not just your own personal name), you must register that name with the Companies Registration Office (CRO).
3. Setup a Business Bank Account.
4. Consider VAT and Insurances.
5. Once registered, you’ll receive a tax reference number and can start trading.

If you would like an expert to take the hassle out of registering as a sole trader our team can assist with this. Simply call (01) 611 0707, or book in with our team for a free consultation and we can handle all the paperwork for you.

Here’s a very simple breakdown of what’s involved for taxation as a Freelancer…

1. You need to register as self-employed with Revenue and will pay tax through self-assessment.
2. You’ll invoice clients for work completed and receive gross earnings, which is the full amount before any tax has been deducted.
3. You’ll be responsible for keeping track of what you earn and filing a tax return each year with the Revenue, through which you’ll pay taxes on income earned.
4. The tax return deadline is the end of October, and you will pay tax on income earned for the previous year, along with preliminary tax, which is an estimate of what you’ll owe for the next year.

If this sounds like a lot, no problem, simply use our accounting and tax solutions to take care of it for you!

Book a call on contractingplus.com or ring our team on (01) 611 0707 and we can help you find the best solution for your business.

If you’ve set up a business to supply taxable services, you will need to consider VAT. If your annual turnover in a 12 month period exceeds €42,500, you must register. It’s important to note that this is a rolling 12 month period, not a calendar year.

If you think your earnings will be close to the threshold best advice is to register and charge VAT on your invoices. If your turnover is below the threshold, you can still choose to register voluntarily and reclaim VAT also on your costs.

Once registered, you then…

• File VAT returns, usually every two months.
• And you can reclaim VAT on eligible business costs.

Visit the Revenue website for more information on VAT thresholds.

Yes, you can. Many sole traders switch to a limited company structure as their business grows to take advantage of the many benefits that come with this structure.

How you change from Sole Trader to a Limited Company set up can be broken into four steps:

• First think of a company name and your company officers. You can be the sole director and shareholder which gives you full ownership and control.
• Once you have this, you’ll need to incorporate your company with the CRO, that’s the Company Registrations office in Ireland.
• Once the company is incorporated you can set up your business bank account, register with Revenue for tax and VAT, and finally we suggest putting company insurances in place, so you are fully protected.
• Finally transfer your clients, assets and contracts.

Now you’re ready to start invoicing clients! If you’re not sure if now’s the right time, or want support with the set up of your company, our team can discuss if it’s a financially beneficial move for your business, help you with the setup and any paperwork involved.

You can claim business expenses that are wholly and exclusively for the sole purpose of your business. However, expenses should be wholly and exclusively for your business, they should always be vouched by receipt,
and they need to be deemed reasonable. Examples of common business expenses can include;

• Office supplies and equipment
• Rent and utilities for business premises
• Business travel and mileage
• Professional fees (e.g., accountant, solicitor)
• Marketing and advertising
• Mobile phone and internet (business portion)
• Training courses relevant to your trade

If you have any further queries on allowable business expenses for sole traders our team are happy to help out on (01) 611 0707.

As a freelancer, you’ll raise an invoice to your clients as you perform work for them, or at the end of an agreed project period. This is a request for funds owed for the work you have completed.

A good invoice should include:

• Your name or business name
• The date
• A description of the work or service provided
• The amount due
• Payment terms or bank details
• If you’re VAT registered, you’ll also need to include your VAT number and clearly show the VAT charged.

Keeping organised invoices makes it much easier when it comes to filing your tax return and tracking your income throughout the year. If you’re unsure what should be included on your invoices or how to set them up properly, take a look at how our accounting solutions could help.

The income tax return deadline in Ireland is 31st October. We can help you submit all self–assessment income tax documents by this date.

If your return is filed after the deadline, Revenue will apply a late-filing surcharge on top of the tax you owe, and the longer it’s left outstanding, the higher this can be. Filing late can also result in interest charges on unpaid tax and can affect your standing with Revenue.

The best way to avoid this is to plan ahead, keep your records organised throughout the year, and not leave everything until the last minute. If your tax return is weighing on you, don’t wait for the deadline to creep up, send us a message or call (01) 611 0707 and we’ll help you get ahead of it.

You should always know what your skill set is worth per hour. To help benchmark yourself against others in your industry you could ask around or check out relevant reports. Ireland’s Project Economy, an annual survey completed by Trinity Business School, includes plenty of information on what rates freelancers and contractors are on in many different sectors.

Also, if you are just starting out you could use our calculators to determine how much you should charge per day.

A Sole Trader is an individual running their own business. As a Sole Trader, you and your business are considered the same legal entity. This means you’re personally responsible for any debts or legal claims against your business.
On the other hand, A Limited Company is a separate legal entity, which offers limited liability protection. With a limited company, you’ll get more tax planning options, more professional credibility for your business, and more protection of your personal assets. To set up a Personal Limited Company contact us on (01) 611 0707.

In Ireland, some grants may be considered taxable income, while others (especially training or capital grants) might not be. It’s best to check with your accountant or tax advisor to understand how a grant might impact your tax position.

You can find small business grants through your Local Enterprise Office, Enterprise Ireland, or rural development schemes. Keep an eye on gov.ie for government supports, sign up to business newsletters, and follow local councils or enterprise bodies on social media for updates.