Sole Trader then PAYE

worc

Numbers below are purely to try and make things easier.

Say for first 6 months of this year a person is self-employed as a sole trader and earned €20,000 before tax, then for the next 6 months they pack in the sole trader and become a PAYE earning say €10,000.

So total income for the year is €30,000 - is the tax/tax credits/PRSI/USC calculated against the total income for entire year or is it done seperately for the sole trader vs. PAYE income?

What I'm trying to work out is how the tax credits work and in the end how much net income a person in that situation would have - because 20,000 of the 30,000 is only covered by single person tax credits (€1,650) while the next 10,000 is covered by single person and PAYE credits (€3,300).

Would it be a breakdown as below (not accounting for PRSI/USC for ease)?

Sole Trader: €20,000
Tax before credits: €4,000
Tax accounting for credits: €2,350

PAYE: €10,000
Tax before credits: €2,000
Tax accounting for PAYE credits*: €350

So (excluding PRSI/USC outgoings again just for ease) income would be €27,300 given €30,000 gross minus €2,700 tax?

*not accounting for single person credits as they have already been used.

JaManSnowFlake

Interesting question, did you find an answer?