How does a sole trader register and file taxes in Ireland?

A sole trader in Ireland is the simplest business structure — you trade as yourself, with no legal separation between you and the business. Here is the full registration and filing process.

Registering as a sole trader:

• Register with Revenue for Income Tax via Revenue's myAccount or by completing Form TR1. You must do this within 30 days of commencing trade.
• Register a business name with the Companies Registration Office (CRO) if you are trading under a name other than your own (e.g., 'Dublin Web Solutions' rather than 'John Murphy'). Fee is €20 online.
• Register for VAT if your annual turnover exceeds or is likely to exceed €40,000 for services or €80,000 for goods. You can also register voluntarily below the threshold.

How is a sole trader taxed?

Your business profits are subject to Income Tax, USC, and PRSI (Class S at 4%). There is no corporation tax. You file a Form 11 each year through the Revenue Online Service (ROS) by 31 October (or mid-November for ROS filers). Your tax payment (including preliminary tax) is due at the same time.

Allowable expenses you can deduct include materials, wages, rent (for business premises), motor expenses (business proportion), professional fees, marketing, and insurance.

Preliminary tax: You must pay 90% of your current year's tax liability by 31 October as preliminary tax, or 100% of the prior year's liability. This means tax is paid before you know the final figure, so good bookkeeping throughout the year is essential.

PRSI and welfare: Sole traders pay Class S PRSI (4%) on all income, with a minimum annual contribution of €500. This builds entitlement to the State Pension (Contributory) and some other benefits, but not Jobseeker's Benefit.