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
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.
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 2007Total
3% PRSI and 2% Health Contribution on all income up to €100,1005% 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 €100,1005%
3% PRSI and 2.5% Health Contribution on all income over €100,1005.5%
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)