Income Tax on €20,000...??

J

Joanne

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I was looking at the following page...
[broken link removed]

If a single person earns €20,000 from self employment would I be correct in thinking the tax is as follows...

€20,000 x 0.20 = €4000
- € 1,630 (single person tax credit)
= €2370 TOTAL TAX


Would I also be correct to think that if someone is a PAYE employee then their tax would be as above but also minus the PAYE credit of €1490

€20,000 x 0.20 = €4000
- € 1,630 (single person tax credit)
- € 1,490 (PAYE tax credit)
= €880 TOTAL TAX


Does this mean that a PAYE employee pays less tax on €20,000 than someone who is self employed?
 
Is this thread of any use to you in working out the differences in the tax treatment of PAYE and self employed individuals?

Don't forget PRSI in your calculations. The thread linked above goes into more detail on this too.
 
Thanks ClubMan for the link to that thread. From what I read there the PRSI for a self employed person appears to be 5%.

If a single person earns €20,000 from self employment would I be correct in thinking the tax is as follows...

€20,000 x 0.20 = €4000
- € 1,630 (single person tax credit)
= €2370 TOTAL TAX

+5% PRSI on €20,000 = €1000

Therefore total amount due = €2370 + €1000 = €3370

Can anyone confirm if my figures are correct?
 
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