Tax as a Sole Trader in Ireland – Part 1: An Introduction
Learn about key tax duties for sole traders in Ireland and what to expect in this four-part series.
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Your Practical Tax Guide
for Irish Sole Traders
Your all-in-one resource as an Irish Sole Trader
Form 11
You must file a Form 11 if your rental income is over €5k net or €30k gross
VAT
Register for VAT if your taxable turnover is above €42,500 for services or €85,000 for goods
Preliminary Tax
Pay at least 100% of last year’s liability or 90% of this year’s – whichever is lower
Key Dates for 2026
Key tax and compliance dates for Irish Sole Traders in 2026
January 31st
Pay CGT on any assets you sold between 1-31 December 2025.
Mid-November
Deadline to file your 2025 Form 11, pay any tax due on your 2025 business income, and pay your 2026 preliminary tax liability on business income.
December 15th
Pay CGT on disposals made between 1 January and 30 November 2026.
Taxes on Business Income
40%
Income Tax
11%
USC
4.2%
PRSI
55.2% Total
At the marginal rate of tax
PRSI increase
The PRSI rate will rise to 4.35% from 1 October 2026, from the previous rate of 4.2%.
Your Obligations
Register and file for Income Tax
Register as a sole trader with Revenue and file an annual Form 11 + pay any balance of tax and preliminary tax by 31 October.
Pay Income Tax, USC & PRSI on your profits
As a self-employed person you must pay USC and Class S PRSI on your trading profits through the self-assessment system.
Keep proper books and records
Maintain accurate records of all income, expenses, invoices, receipts, and bank transactions for at least 6 years in case Revenue review your affairs.
Register for and operate VAT
If your taxable turnover exceeds the VAT thresholds (services vs goods), you must register, charge VAT on sales, file VAT returns, and pay VAT on time.
Key Resources
Everything you need to know as a Sole Trader in Ireland
Stop Leaving Money on the Table
Many Irish Sole Traders miss out on valuable tax reliefs. We’ll review your situation and make sure you’re claiming everything you’re entitled to, so you only pay the tax you need to on your business income.
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Sole Trader Tax Return Package: €299
For just €299, we’ll calculate the tax due on your business income and file your Form 11 with Revenue on your behalf.
Common Unclaimed Reliefs
Deductible business expenses
Capital allowances (12.5% deduction)
Pension contributions
Professional fees & subscriptions
Start your Claim Today
Damien will make sure you claim every tax relief you’re entitled to.
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Flat Fee of Only
€299 per tax return
Discounts available for multiple tax returns
No hidden fees or surprises
Preliminary tax calculation included
Consultation call with Damien to discuss your position
Transparent pricing, no surprises
Expert tax review
Discounts for married couples
Interactive Calculator
Tax on Business Income Calculator
Calculate the tax due on your business income
Calculate your tax on self-employed income as a sole trader in Ireland. Your self-employed profit (or loss) will be added to your employment income to determine your overall tax liability.
Tax Year
Marital Status
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Employment Income & Details
Marital Status
Active credits: Personal, PAYE
FAQs
Frequently Asked Questions
If you have a question that's not answered here, please email us at damien@irishtaxhub.ie
A sole trader is an individual who runs a business in their own name. You pay Income Tax, USC and Class S PRSI on your profits, not on your total sales. Profits are your sales minus allowable business expenses and capital allowances.
Yes. If your non-PAYE income is over €5,000 net or €30,000 gross in a tax year, you must register for self-assessment and file an annual Form 11 with Revenue.
You register for self-assessment using Revenue’s online system (ROS / myAccount) – typically by filing a TR1 or online business registration. You’ll need a PPS number and to select the taxes you’re registering for (Income Tax, possibly VAT and RCT).
Most sole traders pay:
- Income Tax at 20% and 40% bands,
- USC, and
- Class S PRSI on their trading profits.
- You may also need to register for VAT and RCT depending on your turnover and sector.
Key dates for 2026 include:
- 31 January – CGT on disposals from 1–31 December 2025
- Mid-November – file your 2025 Form 11, pay any balance of tax and your 2026 preliminary tax
- 15 December – CGT on disposals from 1 January–30 November 2026
You must register for VAT if your taxable turnover exceeds €42,500 for services or €85,000 for goods in a 12-month period. Once registered, you must charge VAT, file VAT returns and pay VAT to Revenue.
You must register for VAT if your taxable turnover exceeds €42,500 for services or €85,000 for goods in a 12-month period. Once registered, you must charge VAT, file VAT returns and pay VAT to Revenue.
You must keep full and accurate records of all income, expenses, invoices, receipts and bank transactions for at least six years, in case Revenue reviews your affairs.
Yes. Your sole trader profits are added to your PAYE income to calculate your overall tax bill. You still file a Form 11 and pay any additional Income Tax, USC and PRSI due on your combined income through self-assessment.
The hub gives you:
- A Tax on Business Income Calculator to estimate tax on your sole trader profits,
- Guides on registration, deadlines, VAT and reliefs, and
- A Sole Trader Tax Return package where Irish Tax Hub calculates your tax, handles preliminary tax and files your Form 11 for a fixed fee.