Self Employed Tax Return FAQs

You claim is based on the percentage business use of the car e.g. Total annual running costs €5,000 Business Use 75% Tax claim for €3750 (€5,000 x 75%)

Ongoing expenses are the regular costs you incur to keep your business running. They are recurring, necessary, and usually tax-deductible.

Examples for businesses:

• Rent and utilities
• Staff wages
• Marketing and advertising
• Software subscriptions
• Insurance
• Routine maintenance

These are different from capital expenses, which relate to buying long-term assets like equipment or vehicles.

Keeping track of ongoing expenses helps with:

• Budgeting and cash flow
• Reducing your taxable profit
• Filing accurate tax returns

An annual fixed assets claim refers to claiming capital allowances on long-term business assets, such as equipment, machinery, or vehicles.

Instead of deducting the full cost of an asset in one year, you claim a percentage of it each year over time.

Examples of capital allowance rates:

• Plant & machinery: 12.5% over 8 years
• Industrial buildings: 4% over 25 years

Example:
If you buy equipment for €40,000, you can claim €5,000 per year (12.5%) for 8 years against your taxable profits.

To claim:

• The asset must be used wholly and exclusively for the business.
• Include the claim in your Form 11 tax return.

Drawings are money or assets you take out of your business for personal use. This applies to sole traders and partners—not company directors.

Key points:

• Drawings are not a business expense and can’t reduce your taxable profits.
• You are taxed on the profit your business makes, not how much you withdraw.
• Drawings reduce your capital in the business but do not affect your tax bill.

Example:
You earn €50,000 in business profit and take out €20,000 during the year. You’re still taxed on the full €50,000.

Your taxable profit is calculated as:

1. Total income
All revenue from trading or rental income.

2. Minus allowable expenses
Costs that are wholly and exclusively for the business (e.g., rent, wages, materials, insurance).

3. Minus capital allowances
Claimed on items like equipment or vehicles instead of depreciation.

4. Add back non-deductible costs
Such as personal expenses or fines.

Example (sole trader):

• Income: €100,000
• Expenses: €40,000
• Capital allowances: €5,000
• Taxable profit: €55,000

Rental income example:

• Rental income: €20,000
• Expenses: €8,000
• Mortgage interest: €4,500
• Taxable profit: €7,500

Your profit is then used to calculate your Income Tax, USC, and PRSI.

If you’re self-employed, you pay tax under Ireland’s self-assessment system, which works on a “Pay and File” basis.

You must:

1. Pay Preliminary Tax
   • Due by 31 October each year (or mid-November if using ROS).
   • This is a payment towards your current year’s tax bill.
   • You can pay:
     • 100% of last year’s tax
     • or 90% of this year’s estimate
     • or 105% of the year before last (if paying by direct debit)

1. File Your Tax Return (Form 11)

1. • Due by 31 October the following year (or extended ROS deadline).
   • You declare your income, claim credits, and calculate your final tax due.

1. Pay the Balance of Tax Owed

1. • This is the difference between your actual tax liability and what you paid as preliminary tax.

How to pay:

• Most people pay and file through Revenue Online Service (ROS)
• You can also pay by bank transfer or direct debit

If you’re self-employed, you must file a Form 11 tax return once a year.

• Due by 31 October of the year after the income was earned (or slightly later if using ROS).
• Example:
  • For 2024 income, file by 31 October 2025.

Filing late may lead to penalties and surcharges, so it’s important to stay on top of your deadlines.

If you miss the payment deadline, you may face:

Interest

• Charged daily on overdue tax until it’s paid.

Enforcement

• Revenue may take legal action or refer your case to a sheriff for collection.

To avoid this, always pay on or before 31 October each year.

Late returns can result in:

1. A Surcharge
   • 5% of your total tax (max €12,695) if filed within 2 months
   • 10% (max €63,485) if filed more than 2 months late

1. Restrictions on Tax Reliefs

1. • You may lose access to things like loss relief or capital allowances.

1. Interest and Penalties

1. • You’ll also pay interest if tax is unpaid.

You only pay the Universal Social Charge (USC) if your total income exceeds €13,000 in a year.

If your income is under this amount, you’re exempt.

Special reduced rates apply if:

• You are aged 70+ or have a full medical card, and
• Your income is €60,000 or less

Some income is always exempt, such as:

• Social welfare payments
• Certain pension lump sums

Here are the 2025 USC rates for most people:

Extra charges:

• If you’re self-employed and earn over €100,000, you pay a 3% surcharge on that portion (making it 11%).

Example:
For income of €50,000:

• 0.5% on €12,012 = €60.06
• 2% on €15,370 = €307.40
• 3% on €22,618 = €678.54
• Total USC = €1,046

You can’t claim the full mortgage. But if you’re self-employed and work from home, you can claim a portion of the mortgage interest (not the capital repayment) as a business expense.

To calculate your claim:

1. Area used for business: % of your home used for work.
2. Time used for business: % of time that area is used for business.

Example:

• 10% of your home is used exclusively as a home office.
• You use it full-time for business.
• You can claim 10% of your annual mortgage interest.

Important:

• Keep records of mortgage interest and calculations.
• Claiming a home office may affect Capital Gains Tax (CGT) when selling the home.

Yes. If you’re self-employed, you can claim furniture and equipment used for business.

Capital Items (e.g., desk, chair, printer):

• Claim over time via capital allowances.
• 12.5% per year over 8 years.
• €800 desk = €100/year for 8 years.

Revenue Expenses (e.g., repairs, small consumables):

• Deduct the full cost in the year of purchase.

Employees:

• You can’t claim unless:
  • It’s essential to your job
  • It’s not reimbursed by your employer
• Easier option: have employer provide or reimburse directly.

No. You can’t charge rent to yourself. But you can claim a portion of home expenses (like rent or utilities) if you work from home.

How to calculate your claim:

1. % of your home used for business
2. % of time it’s used for business

Example:

• Rent = €1,200/month
• Business space = 10%
• Time used = 1/3 of the day
• Claim: €1,200 × 10% = €120
• €120 × 1/3 = €40/month

Tip: Keep records and avoid claiming for mixed-use rooms unless you apportion use carefully.

Possibly. If any part of your home was used exclusively for business, that part may be liable for Capital Gains Tax (CGT) on sale.

Key Points:

• Principal Private Residence (PPR) Relief covers your main home.
• Business-only areas don’t qualify for full relief.

Example:

• House sold: €500,000
• Bought for: €300,000 + €20,000 in allowable costs
• Gain = €180,000
• 10% used exclusively for business
• CGT on €18,000 × 33% = €5,940

Tip: If the space was also used personally, CGT may not apply. Keep records of how it was used.

If you claimed Owner-Occupier Stamp Duty Relief, using part of your home exclusively for business might breach the rules.

Key risks:

• Relief is only for your main private residence.
• Revenue could claw back the relief if any part is used solely for business.

To avoid issues:

• Don’t designate any space as business-only.
• Use shared or dual-use rooms.

If unsure, get professional advice.

Yes, if you’re self-employed. You can claim a portion of your rent if you work from home.

How to calculate:

1. % of apartment used for business
2. % of time used for business

Example:

• Rent = €1,000/month
• 50% of space used for business, 1/3 of the time
• Claim: €1,000 × 50% × 1/3 = €166.67/month

Keep records (floor plan, working hours) to justify your claim.

Even if you paid €30,000, the maximum you can claim capital allowances on is €24,000.

Step-by-step:

• €24,000 × 12.5% = €3,000 per year
• Adjust for business-use %

Example:

• Business use = 60%
• Claim: €3,000 × 60% = €1,800 per year

Note: Cars with CO2 emissions over 155g/km don’t qualify for capital allowances.

No. Self-employed individuals can’t use mileage allowances the same way employees can.

Instead, claim actual business-related car expenses:

• Fuel, maintenance, tax, insurance
• Capital allowances (for the vehicle cost)

You must:

• Keep a logbook
• Track personal vs. business mileage

Example:

• Total car expenses = €5,000
• Business use = 60%
• Claim = €3,000

Computers are considered capital assets. You can claim them as capital allowances.

Two Options:

1. Capital Allowance (Standard):
   • 12.5% per year over 8 years.
   • €1,500 × 12.5% = €187.50 per year.
   • If used 80% for business: €150 per year.
2. Immediate Deduction:
   • If the item is low-cost and used wholly for business, Revenue may allow you to claim the full €1,500 in the year of purchase.

Tip:

• Keep receipts and claim the deduction in your Form 11 tax return.
• Ask your accountant or Revenue if the immediate deduction applies.

Generally, no. Meals are considered personal unless specific conditions are met.

When You Can Claim:

1. Overnight business trips (e.g., conferences)
2. Regular travel as part of your business (e.g., lorry drivers)

What You Need:

• Receipts
• Proof of travel

Not Allowed:

• Meals during a normal workday at your regular place of business

You can only claim expenses related to the business portion of the trip.

Allowable:

• Flights (if business is the main reason for the trip)
• Hotel, meals, and transport during business days

Not Allowable:

• Holiday expenses (e.g., sightseeing, extra days of hotel stay)
• Meals or accommodation during holiday portion

Example:

• Trip: 3 business days + 4 holiday days
• Hotel: €1,400 total (€200/night × 7 nights)
• You can claim €600 (3 business days × €200)

Tip:

• Keep a clear itinerary
• Apportion any shared costs (e.g., flights or hotel bills)
• Document the business purpose (e.g., trade show invite, client meeting agenda)

Yes, but follow the rules:

Key Conditions:

• Pay them a reasonable commercial wage.
• They must do real work.
• Keep employment records (contract, timesheets, PAYE).

Children

• Limited hours for under-16s.
• Must not interfere with school or wellbeing.

Spouses

• Can be employed, but wages must reflect actual work.

Revenue will disallow expenses that aren’t “wholly and exclusively” for business.

Yes – if done properly:

Tax Benefits

• Their salary is a business expense.
• They may qualify for PAYE tax credit (€2,000).
• You reduce your taxable income (e.g., shift income from 40% to 20% band).

Rules

• The job must be genuine.
• Pay must be fair for the work.
• You must run PAYE and keep records.

Yes – pay must be fair, and age laws apply.

Wages Must Be:

• For actual work done.
• At a reasonable rate.
• Backed up with records (timesheets, contracts).

Tax-Free Allowance (2025)

• If no other income, they can earn up to €8,000 tax-free (based on personal + PAYE credits).
• No USC on income below €13,000.
• No PRSI if under 16.

Check youth employment rules for hours and types of work.

There are significant tax differences between a self-employed consultant and an employee, with variations in tax obligations, deductions, and benefits.

Self-Employed Consultant:

• Tax Obligations: Self-employed consultants are taxed under Schedule D and must file tax returns themselves. They are responsible for paying Income Tax, Universal Social Charge (USC), and Pay Related Social Insurance (PRSI).
• Deductions: Self-employed consultants can claim a wide range of deductions, including office rent, professional fees, and travel expenses.
• Risk & Benefits: They bear the financial risk of their business and are not entitled to benefits like paid leave or redundancy.
• Flexibility: They can work with multiple clients and have control over their work schedule.

Employee:

• Tax Obligations: Employees are taxed under Schedule E, with taxes deducted at source through the PAYE system by their employer.
• Deductions: Employees have fewer deductions but can claim tax credits like the Personal Tax Credit and Employee Tax Credit.
• Risk & Benefits: Employees do not bear financial risk and are entitled to benefits like paid leave and sick pay.
• Control: Employees are typically subject to employer control over their work hours and responsibilities.

Key Tax Differences:

• Self-employed individuals can claim more deductions to reduce taxable income, while employees have limited deductions.
• Self-employed individuals file their own taxes, while employees have taxes deducted automatically.
• Self-employed individuals pay a lower PRSI rate (Class S), with fewer social welfare benefits compared to employees (Class A).

No, you cannot choose to be self-employed just to avoid PAYE tax. Your employment status is determined by the facts and circumstances of your working relationship, not by personal choice. Here’s how it works:

Revenue’s View:

• Revenue looks at various factors such as control, financial risk, and independence to decide if you are an employee or self-employed.
• Employees: Typically work set hours, are under employer control, and receive benefits like sick leave and holiday pay.
• Self-Employed Consultants: Work for multiple clients, control their work hours, and bear financial risk.

Revenue’s Five-Step Framework:

Revenue uses a framework to assess your status, considering:

1. Control: Who determines how, when, and where the work is done?
2. Financial Risk: Does the worker bear the cost of mistakes or business investment?
3. Mutual Obligation: Does the employer have to offer work, and is the worker obliged to accept it?
4. Integration: Is the worker part of the employer’s business, or do they operate independently?
5. Other Factors: Entitlement to benefits and the ability to work for multiple clients.

Misclassification Risks:

• If you’re incorrectly classified as self-employed, Revenue may reclassify you as an employee, requiring backdated taxes, PRSI, and USC.
• Penalties and interest may apply for misclassification.

Example:

• If you work for one company, follow their instructions, and receive a regular salary, you are likely an employee, even if you label yourself as a “self-employed consultant.”

Conclusion:

You cannot simply decide to be self-employed to avoid PAYE. Your employment status depends on the nature of your working relationship, as determined by Revenue. If you’re unsure about your status, it’s best to consult with a tax professional or Revenue for guidance.

Yes — RCT is a withholding tax, not your final tax liability. You must:

• File an annual Income Tax return (Form 11) or Corporation Tax return (CT1).
• Declare all income and expenses.
• Claim credits or refunds due.

Revenue won’t refund RCT until your tax return is filed and other liabilities are up to date.

• Log into ROS to see RCT credits under “RCT Deduction Summary.”
• Revenue issues a Deduction Authorisation for each payment.
• Contractors must provide you with RCT details.
• If you don’t see the credit, check with the contractor or contact Revenue.

Yes — once your tax return is filed, Revenue automatically applies RCT credits against:

• Income Tax or Corporation Tax
• Preliminary Tax
• PAYE (if you’re an employer)
• VAT
• Any other liabilities

Remaining RCT credits can be refunded or carried forward.

If you’ve become self-employed in Ireland, there are a few key steps to get your tax sorted:

• Register with Revenue
  Sign up as self-employed using Revenue’s Online Service (ROS). You’ll need your PPS number and will be issued a Tax Reference Number.
• Know what taxes you’ll pay
  • Income Tax
  • PRSI (Pay Related Social Insurance)
  • USC (Universal Social Charge)

These are paid under the self-assessment system.

• Pay Preliminary Tax
  This is a payment towards your current year’s tax bill, due by 31 October each year.
• Keep good records
  Track all income and business expenses. Keep receipts, invoices, and bank statements in case Revenue ever asks to see them.
• Claim your tax credits
  Most self-employed people can claim the Earned Income Tax Credit – worth up to €2,000 in 2025.
• Check if you need to register for VAT
  If your turnover goes over €85,000 (goods) or €42,500 (services), you must register for VAT.
• File a Form 11 every year
  Your tax return (Form 11) and final payment are due by 31 October for the previous year. If you e-file via ROS, you usually get a short extension until mid-November.

Our team of tax experts can advise you on your obligations. Contact us at info@fasttax.ie to hear more.

You must register for VAT if your turnover goes above certain thresholds:

• €85,000 – For selling goods.
• €42,500 – For providing services.
• €85,000 – For mostly goods plus some services (90% goods).
• €10,000 – If you sell digital services (TBE) or goods into Ireland from another EU country.
• €41,000 – If you buy goods from other EU countries.

These apply over any rolling 12-month period – not just the calendar year.

You can also register voluntarily, even if you’re below the thresholds. This can be useful if you want to reclaim VAT on business expenses, especially if your customers are VAT-registered themselves.

Once registered, you must:

• Charge VAT on sales.
• Submit VAT returns (usually every 2 months).
• Keep proper records.

Failing to register when required can result in penalties.

We can help you with the best way to record your details and complete required VAT returns.

Yes. If you’re self-employed, you may qualify for the Earned Income Tax Credit – worth up to €2,000 in 2025. FastTax.ie makes it easy to apply your tax credits.

This credit is for:

• Sole traders and freelancers
• Proprietary directors
• Anyone earning income from a trade or profession (not passive income like rent or dividends)

You can’t claim both the Earned Income Credit and the PAYE Credit in full – the maximum between them is €2,000.

Other useful tax reliefs include:

• Claiming business expenses (rent, phone bills, software, etc.)
• Pension contributions, which reduce your taxable income
• Start-Up Refunds for Entrepreneurs (SURE) if you’re leaving PAYE work to start a business. If you were an employee, an unemployed person or a person recently made redundant, provided that your main income in recent years was PAYE, you may qualify for a refund in income tax to help start a new company.

The Earned Income Credit is usually applied automatically when you file your tax return.

You need to register as an employer with Revenue if:

• You hire staff and pay them wages.
• You employ someone in your home (like a cleaner or childminder) and pay them more than €40 per week.
• You have more than one domestic employee, regardless of pay.
• You are a company director and pay yourself a salary from the company.

You don’t need to register if:

• You’re self-employed and work alone (no staff).
• You hire one domestic employee and pay them less than €40/week.

If you need to register, you can do it online through ROS. Once registered, you must:

• Deduct tax (PAYE), USC, and PRSI from employee wages
• Submit payroll details to Revenue every time you pay staff
• Keep records of all payments

FastTax.ie and our team of experts can help you with this.

Your profit is the income left after deducting business costs. Here’s how it works:

1. Start with total income
All revenue earned from sales or services.

2. Deduct allowable expenses
Only costs that are wholly and exclusively for your business can be deducted. Examples include:

• Rent and utilities for business premises
• Staff wages
• Materials or supplies
• Travel for business (not commuting)
• Accountancy, legal, or marketing fees
• Business insurance
• Equipment and tools

3. Apply capital allowances
Large items (like machinery or vehicles) can’t be written off all at once. Instead, claim their cost over several years through capital allowances.

4. Result = Net Profit
This is the figure you’ll be taxed on.

Example:

• Income: €80,000
• Expenses: €30,000
• Capital allowances: €5,000
• Net profit = €45,000

You’ll then pay:

• Income Tax: 20% up to €44,000 (single person), 40% above
• USC: Based on gross income, with a 3% surcharge on income over €100,000
• PRSI: 4.1% of profit or €650 minimum

FastTax.ie makes it easy to calculate your self-employed profits and generate your Form 11 tax return.

Turnover is your total business income from sales or services before any costs are deducted. It’s also known as gross revenue.

Key points:

• It’s not the same as profit—turnover is before expenses.
• It usually excludes VAT (if you’re registered for VAT).
• It only includes trading income (not investment returns or asset sales).

Why it matters:

• Used to assess if you must register for VAT (e.g. over €85,000 for goods or €42,500 for services).
• A key figure in your tax return and financial reporting.
• A good indicator of how your business is performing.

Example:
You run a salon and earn €60,000 in customer payments. That’s your turnover.
If your costs (rent, supplies, etc.) are €35,000, your profit is €25,000.

When you start during the year, you prepare accounts from your start date to the end of your chosen accounting period—usually 31 December.

For your first tax year, you’re taxed on the actual profit earned from your start date to 31 December.

Example:

• Start date: 1 October 2025
• End of tax year: 31 December 2025
• Profits during this time: €6,000
• Taxable profits for 2025 = €6,000

In the second year (2026), you’ll be taxed on profits for the full 12 months ending 31 December 2026.

If your accounting date doesn’t align with the tax year, special rules apply—and you may have overlap profits. Our team of experts can help you in this scenario.

Yes, most people in Ireland pay PRSI (Pay Related Social Insurance).

• Self-employed (Class S):
  • Pay 4% of profit
  • Minimum annual payment: €500
  • If earning over €5,000 a year.
• Employees (Class A):
  • If earning more than €410 per week, pay 4% of wages
  • If earning below €410 per week, you may qualify for a PRSI exemption
  • Employer pays an additional 8.8%–11.05%

PRSI funds benefits like the State Pension and illness or maternity payments.

Note: PRSI for Self-Employed and Employees increasing to 4.2% after 1^st October 2025.

You don’t pay PRSI if you’re:

• Earning under €5,000 as self-employed
• Aged 66 or older

If your utility bills (e.g., electricity and heating) aren’t itemised separately, you can still claim a portion based on business use.

Steps:

1. Work out the % of your home used for business.
2. Adjust for how much of the time it’s used for work.
3. Revenue typically accepts that 10% of the total utility cost is reasonable for remote working.

Example:

• Annual utility bill: €1,200
• Business space: 10% of floor area
• Space is used exclusively for work
• Claim: €1,200 × 10% = €120

Keep all records of bills and how you worked it out.

Yes — if you’re self-employed. You can claim the business-use portion of your home phone costs.

Self-Employed:

• Calculate the % used for business based on call logs or estimates.
• Keep records and itemised bills.

Example:

• Annual bill: €600
• 50% used for business
• Claim: €300

Tip: Consider a separate business phone line for simpler claims.

If your laptop is no longer usable, you may be entitled to a balancing allowance.

Example:

• Laptop cost: €2,400
• Claimed over 3 years: €900 (3 × €300)
• Remaining value: €1,500
• You can claim €1,500 as a balancing allowance this year.

Important:

• Keep evidence the laptop is unusable.
• If you sold it for any amount, you need to subtract that amount from the balancing allowance.FastTax.ie makes it easy to claim your capital allowances each year.

Yes. Self-employed individuals cannot claim:

• Personal/household expenses
• Full loan repayments (only interest portion can be claimed)
• Capital expenditure (claimable via capital allowances instead)
• Business entertainment (e.g., client meals)
• Revenue penalties, fines or late payment interest
• Drawings (personal withdrawals)
• Personal meals during the workday
• Dual-use costs (unless apportioned for business)
• Unsubstantiated expenses (no receipts)
• Costs of commuting to workplace/place of business

Always ensure expenses are wholly and exclusively for your trade.

Yes, if the expense is reasonable and for the benefit of staff, you can claim:

Allowable:

• Staff parties, sports days (open to all employees)
• Meals while staff are travelling for work
• Virtual events (e.g., food vouchers during remote working)

Not Allowable:

• Client entertainment (e.g., taking clients to lunch)
• Excessive or lavish events

Tip:

• Keep receipts.
• Ensure it’s not classified as client entertainment under tax law.

Yes — provided the trip is wholly and exclusively for business.

You Can Claim:

• Flights, transport, hotels (for business portion only, and within reason)
• Subsistence during overnight stays

Important:

• Keep receipts and records of business purpose
• If there’s a private element (e.g., a few days for holiday), apportion the claim

VAT:

• Some foreign VAT may be reclaimable (e.g., hotels in EU countries)
• VAT on flights is not reclaimable

This depends on your goals, liability comfort, and tax situation.

If in doubt, talk to our team of tax experts for tailored advice for your situation.

The most important question to ask yourself is if you need limited liability. E.g. a painter can’t do much damage, but a plumber installing heating systems could have a bigger personal exposure. Limited liability more important for the plumber in these cases.

The second question is can you leave profits in the business or do you need to take out all profit by way of salary to meet your normal living expenses. If the latter, a limited company may not be required.

Here’s a summary:

 Advantages/disadvantages of a Limited Company (provided you can leave profits in the company) are:

• Pays 12.5% corporation tax – potential tax efficiencies.
• Limited liability – your personal assets are protected.
• More admin – CRO filings, separate accounts, company law compliance.
• Can retain profits – useful for reinvestment and tax planning.

Summary

• Sole trader: Good for small start-ups with low risk.
• Limited company: Better for scaling, risk management, and tax efficiency.

That depends on your business structure:

For Sole Traders/Self-Employed

• No – Personal pension contributions are not business expenses.
• But you can claim income tax relief on them against your personal income, subject to:
  • Age-related limits (15–40%).
  • Annual earnings cap (€115,000).

Speak to our tax advisors for specific guidance based on your setup.

Yes – if you’re self-employed or a sole trader, you can make a pension contribution before the tax deadline (usually 31 Oct or mid-Nov if online) and elect to apply it to the previous tax year.

Example

• If your 2024 income was €100,000 and you’re aged 40, you can claim tax relief on a pension contribution of up to €25,000.
• This reduces your 2024 income tax bill.

Excess contributions can be carried forward. Check limits before contributing. See our helpful pensions calculator.

The amount of tax you can save by contributing to a pension depends on your age and the maximum allowable contribution. Here’s a breakdown of the potential tax relief:

The tax relief depends on your contribution and tax rate. For example, if you’re under 30 and contribute the maximum amount of €17,250, you could save up to €6,900 in tax at the 40% tax rate.

1. Revenue Limits (2025)

2. Your Goals

• Think about your retirement plans and how much you want to save.

3. Backdating Option

• If you’re filing your tax return, you can make a contribution now and backdate the relief to the previous tax year.

Need help deciding? Ask our team of experts.

It depends on your business, but here’s a quick guide:

Easier if:

• You only trade in Ireland.
• You keep accurate records.
• You use accounting software that automatically calculates VAT.

More complex if:

• You trade with the EU or import/export goods.
• You use postponed accounting.
• You need to make adjustments or handle credit notes.
• You’re on a special VAT scheme.

Tip

Using software or a tax advisor can help reduce stress and avoid errors. Speak to us today.

It depends on your VAT liability:

Deadlines: 19th of the following month (or 23rd if using ROS).

Check your ROS account or talk to Revenue to confirm your frequency.

Revenue selects audit cases based on:

1. Your Tax Returns – anomalies, late filings, inconsistent info.
2. Sector Risk – targeting specific trades or industries.
3. Random Checks – some audits are purely random.
4. Tip-Offs – from ex-employees, anonymous reports, etc.
5. High-Value Purchases – if your declared income doesn’t match your lifestyle.
6. Risk Tools – like REAP (Revenue’s risk analysis system).
7. From Other Audits – e.g. if your supplier or customer is being audited.

You’ll get at least 21 days’ notice if selected. We have plenty of experience with Revenue audits and can help you.

Not always.

If Everything Is Correct

• You’ll owe nothing more. Revenue will close the case.

If There Are Errors

• You may have to pay additional tax.
• You might also pay interest and penalties, depending on the issue.

Voluntary Disclosure

• If you spot a mistake before Revenue contacts you, tell them – this can reduce or remove penalties.

Keep good records to avoid problems if audited.

We have plenty of experience with Revenue audits and can help you.

As a self-employed person, you pay tax on your net profits—that is, your business income minus allowable expenses.

You may also be taxed on:

• Other income (e.g. rental income, dividends)
• Capital gains from selling business assets (e.g. property or equipment)

Your net profit is the basis for calculating:

• Income Tax
• PRSI (Pay Related Social Insurance)
• USC (Universal Social Charge)

FastTax.ie makes it easy to calculate all tax owed on your income.