Self employed tax allowance?

[little feat]

Hi,

I am self employed and earn approx 20k per year before expenses which are not huge. What am I allowed to earn before being liable for income tax?

Also how much should I send revenue for preliminary tax to cover my prsi contribution?

I intend to do my tax matters with the online service or should I see an accountant.

Arthur

 

[Graham_07]

I am self employed and earn approx 20k per year before expenses which are not huge. What am I allowed to earn before being liable for income tax?

That depends on what tax year is involved. For example for 2008 a single person may earn €35,400 at 20%. Income above that is taxed at 41%. A single person tax credit is €1,830 for 2008. E.G. Ignoring expenses tax on €20,000 for 2008 would be caclulated at €20,000 x 20% = €4,000 - €1,830 = €2,170.

Also how much should I send revenue for preliminary tax to cover my prsi contribution?

For 2008 PRSI Class S self-employed is 3% of the adjusted income amount with a minimum of €253.
Where income for 2008 is over €24,960 the entire amount is also liable to Health Contribution at 2%.

I intend to do my tax matters with the online service or should I see an accountant.

If you are unsure as to how things work in relation to self-employed tax I would recommend that you see an appropriately qualified person to handle them for you. Such expenses are usually tax deductible. If you make an error in filing your returns you areliable for any tax underpaid and possible interest and penalties.

(I am an accountant)

 

[little feat]

Thanks so much for that help Graham

 

[strettie]

little feat,

I would also advise you to meet with an accountant to get advice around the records you must keep in order to keep the Revenue happy.

- record of invoices issued/ cash receipts received
- record of expenses paid

It will help you also !!! Nothing worse than looking at a bank statement a year later trying to figure out what ins and outs were for

Strettie