Calculating Income Tax - sole trader

[Scissor]

HI,

I need help calculating income tax. For example if I earned 20000 and my expenses were 7000. Do I pay tax on 13000? so would that be 20% of 13,000 minus my tax credits. PLease can someone explain exactly how this is calculated? and give examples.

thanks a lot.

 

[papervalue]

HI,

I need help calculating income tax. For example if I earned 20000 and my expenses were 7000. Do I pay tax on 13000? so would that be 20% of 13,000 minus my tax credits. PLease can someone explain exactly how this is calculated? and give examples.

thanks a lot.

you pay tax on 13k *20%= 2600 less single credit/married credit to give tax due(only get a refund of tax if tax paid, no refund of excess credits)

If low enough no Income levy/Health levy and maybe min prsi or higher(13k*3%=390) depen on circumstances. An medical card would make a difference to some computations
http://www.revenue.ie/en/tax/it/leaflets/it1.html#section1

link above to tax rates/ prsi rates