How much tax

CJ1

How much tax will my husband owe. He set up as self employed/construction sector in jan 2011. He has earned €15,000. He has considerable expenses, insurance etc totalling to at least €5000 for example he bought a van so will be able to claim a percentage of the overall price of this (I understand).
I am employed in the public sector. I claim his tax credits as he was unemployed for a year before starting up on his own. I earn €55,000. We have one child.

We are getting an accountant to do the tax return for us as we are clueless in tax matters. We would appreciate even a ballpark figure of the money he will owe revenue.

Bobby1984

Your husband will probably pay PAYE at 20%, USC at 2% (income under €10,036) and PRSI at 4%(self employed).

He can claim capital allowances on the purchase of the van 12.5% of the cost of the vehicle and can also claim diesel and any other business expense. However he will not be allowed to claim all of the amounts paid for motor expenses if the van is used for private use, there must be some add backs.

If your figures are correct and assuming capital allowances for 2011 of €1,000, the taxable amount is €9,000 so the tax at 26% is €2,340. Now this is a very rough estimate because there are so many factors which can have an effect on the tax payable.

CJ1

Thank you