Part time sole trader

M

mullers08

Guest
Hi

I'm in full time PAYE employment and I'm also a part time sole trader.
In my full time employment I earn £25,000 per year and £18,000 as a sole trader(about 5k profit)
My wife is currently unemployed so I have full tax credits.
I have an appointment this week with an accountant for the first time so I’m pretty sure he’ll put me straight on where I stand but for now I would appreciate any advice on the following;
(1) Can I carry my unused credits from full time work to sole trader.
(2) Do I pay extra PRSI.
(3) How much should I expect an accountant to charge to do my yearly tax.
Thank you
Peter
 
Hi Peter

1. Any unused tax credits can be used against self-employed income

2. You will pay PRSI on your self-employed profit at 3% on the first €26K and 5% on the remainder.

3. That's like asking "How big is a hole!" but a part-time business with sales of €18K would probably be between €500 - €1,000 depending on the accountant. If you were to write up your sales, purchases, cheques & lodgements on an excel spreadsheet then this should reduce the accountants fees.
 
DB74 said:
2. You will pay PRSI on your self-employed profit at 3% on the first €26K and 5% on the remainder.
Click to expand...

Is this right? I thought you paid 5% on all income (not just profits) and that there was no lower limit (other than the €3k-odd that you need to earn for it even to apply)

From Revenue:

PRSI & Health Contributions - Self-Employed

Class S (Self-Employed)
Self Employed Income chargeable as below:

Tax Year 2007 Total

3% PRSI and 2% Health Contribution on all income up to €100,100 5%
3% PRSI and 2.5% Health Contribution on all income over €100,100 5.5%

Tax Year 2008
3% PRSI and 2% Health Contribution on all income up to €100,100 5%
3% PRSI and 2.5% Health Contribution on all income over €100,100 5.5%

Sprite
 
Thanks a lot guys.

Am I right in saying that I wont be paying tax based on my current earnings.
 
Assuming that you have the following credits:

Married of €3,660 & PAYE of €1,830

then you can earn €27,450 before paying any PAYE

If you have children and are claiming the Home Carers Credit of €900 then you will be able to earn an additional €4,500 before paying any PAYE.

PRSI will be charged on your self-employed income/profit at a rate of 5% irrespective of anything else (although I think if you earn less than €3,174 you are exempt)
 
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