I'm not a numbers person at all. That much will become clear.
I made sod-all last year (less than 10k after expenses). I'm self-employed, single, 41 and renting. No kids. I know about the €1830 tax credit but is there another 'amount up to which I can earn and pay no tax' or am I paying 20% on everything (less my tax credit)?
On the Revenue.ie site it says:
Exemption limit for Single/ Widowed 65 years of age or over = €20,000.
I'm assuming this magical €20k figure is something different altogether?
Were all of the expenses deductible for tax purposes?
Also, the credits were reduced by approximately 10% in the last Budget (you should be entitled to a single persons credit of €1,650 for 2011).
You should also be entitled to a rent credit of €320, so I suspect that if all of your expenses are deductible for tax purposes you should have no income tax liability. PRSI and universal social charge should arise however (at 4% and 2% respectively).
Were all of the expenses deductible for tax purposes?
Also, the credits were reduced by approximately 10% in the last Budget (you should be entitled to a single persons credit of €1,650 for 2011).
You should also be entitled to a rent credit of €320, so I suspect that if all of your expenses are deductible for tax purposes you should have no income tax liability. PRSI and universal social charge should arise however (at 4% and 2% respectively).
It can sometimes be a case of "penny wise/pound foolish" when it comes to claiming a percentage of your home utilities for business purposes.
Assuming that you own your home and that you crystallise a gain when you sell it, the gain is normally not subject to capital gains tax because of principal private residence relief ("PPR relief").
However, if you use a portion of your home for business purposes, the PPR relief is diluted and capital gains tax may arise.
Someone can end up saving a few hundred Euro on the income side of things and costing themselves thousands of Euro down the line when they sell their home.