taxation for self employed

eatmorefruit

a friend of mine told me today that according to her account, whom she paid €500 to do her taxes, as a self employed single person who earned €19,000 for the year she must pay €2000 in taxes. She rents and she has no assets. I find this hard to believe. Can this be correct? I know I have offered vague details.

srsly78

Computer says ~e1700 for a normal paye person. http://www.taxcalc.eu/

She should claim all her tax credits for rent+bins+medical etc, this could wipe out most of the tax liability.

Alan Shore

srsly78 wrote: »

Computer says ~e1700 for a normal paye person. http://www.taxcalc.eu/.

a self employed person is not a normal PAYE person!

19,000 x 20% tax = 3,800 less personal credit 1,650 = 2,150
PRSI 19,000 x 4% = 760
USC on 19,000 = 649

€3,559 in total before rent credit, medical exp cr and bin charges cr.

eatmorefruit

wow.

2moreMinutes

Its only ~10% tax (incl USC & PRSI) so nothing really surprising about it imo.

Not specific to you or your friend but part of the current issues we are experiencing are down to the fact that so many people see things like a 10% tax rate as being too high.

eatmorefruit

well it is just that 19000 is not alot of money and i would think that with that tax rate she would be receiving something for that ie, social security, social welfare if she were to fall sick or unemployed which she is not entitled to. from what i can see she is really supporting a system that does not support her. I am not from here and i am trying to understand why so low of an income would pay so much, with all respect.

kippy

eatmorefruit wrote: »

well it is just that 19000 is not alot of money and i would think that with that tax rate she would be receiving something for that ie, social security, social welfare if she were to fall sick or unemployed which she is not entitled to. from what i can see she is really supporting a system that does not support her. I am not from here and i am trying to understand why so low of an income would pay so much, with all respect.

10% is "so much"?

eatmorefruit

on 19000 given the amount of tax that one pays on top of that-vat and the cost of living in this country.. yes paying 20000 on an annual income of 19000 seems high, specifically-given that she is not eligible for benefits if something were to happen to her. one is punished in this country for being self-employed. there is nothing to fall back on.

srsly78

eatmorefruit wrote: »

on 19000 given the amount of tax that one pays on top of that-vat and the cost of living in this country.. yes paying 20000 on an annual income of 19000 seems high, specifically-given that she is not eligible for benefits if something were to happen to her. one is punished in this country for being self-employed. there is nothing to fall back on.

Self employed can get JSA, but not JSB. So "nothing to fall back on" is nonsense.

kippy

eatmorefruit wrote: »

on 19000 given the amount of tax that one pays on top of that-vat and the cost of living in this country.. yes paying 20000 on an annual income of 19000 seems high, specifically-given that she is not eligible for benefits if something were to happen to her. one is punished in this country for being self-employed. there is nothing to fall back on.

You don't think everyone else has the same costs.
I wish I could get away with a 10% in effective tax rate.

seamus

Self-employed people do get screwed over in this country, but there are also swings and roundabouts. For example, if she uses her phone(s) for business use, then she can claim a % of her phone bills as expenses, meaning that she effectively saves 20% on that portion of her phone bill. Same for things like car use, internet, light, heat, etc.