Going Self-Employed in Ireland: A Starter Guide

Types of self-employment in Ireland

Most self-employed people in Ireland operate as a sole trader — the simplest structure with no registration beyond notifying Revenue. The alternative is setting up a limited company, which provides liability protection but involves more administration. Most freelancers and small business owners start as sole traders.

Registering with Revenue

You must notify Revenue that you are self-employed. Do this through myAccount or by completing a TR1 form. You'll be registered for Income Tax (under the self-assessment system) and potentially for VAT if your annual turnover exceeds the registration threshold (€37,500 for services, €75,000 for goods as of 2024).

How self-employed tax works

Unlike PAYE employees, self-employed people file an annual tax return (Form 11) and pay tax once per year. The deadline is October 31st for paper returns or mid-November for online filing via ROS (Revenue Online Service). You pay income tax, USC, and PRSI Class S (4%) on your net profits.

Preliminary tax

Self-employed people must pay preliminary tax — an advance payment of your expected tax bill for the current year. This is due at the same time as your prior year's tax return. Miscalculating this is one of the most common mistakes for people new to self-employment in Ireland.

Expenses you can deduct

Legitimate business expenses reduce your taxable profit. Common deductions include: home office costs (portion of rent/mortgage, heat, light), equipment, software subscriptions, professional fees, travel for business purposes, and training. Keep all receipts.

PRSI and social welfare entitlements

Self-employed people pay PRSI at Class S, which gives entitlement to a smaller set of welfare payments than PAYE workers — notably the Contributory State Pension, Maternity Benefit, and Illness Benefit (subject to qualifying periods). You are not entitled to Jobseeker's Benefit if your business stops.