Some assistance on self assessment please

samapp

Hello I'm registered as a sole trader. I work from home and to date I have earned such a small amount that after deducting 20% of what I earned the tax comes to a total of 110 euro. I was wondering, does the single person tax credit apply to sole traders in which case I owe 0 euro in taxes right? But then I thought the credits were only for people under PAYE. Please advise.

nompere

You are eligible for all the same credits as any other single person except the employee credit - commonly known as the PAYE credit.

samapp

so does that mean when I file taxes because I only have 110 it will be offset against the credit meaning I owe nothing?

Citizenpain

you still have to file a tax return

just register for ROS and do it online

samapp

Citizenpain wrote: »

you still have to file a tax return

just register for ROS and do it online

I know that bit but will I owe nothing because the credit is bigger than my tax?

Citizenpain

No Tax - but you should probably pay the minimum PRSI - USC will depend on your income levels for 2012

USC -http://www.revenue.ie/en/tax/usc/index.html

PRSI Voluntery Contributions - http://www.welfare.ie/en/Pages/Voluntary-Pay-Related-Social-Insurance-PRSI-Contributions.aspx

Mr. Incognito

Why are you deducting 20% of what you earned?

I think you are confused.

You take your full earnings and tax them at 20% up to the standard rate cut off point

You will also be liable for USC and PRSI.

Revenue will calculate your liability if you submit your return early. I think that may be the way to go for you.

samapp

Mr. Incognito wrote: »

Why are you deducting 20% of what you earned?

I think you are confused.

You take your full earnings and tax them at 20% up to the standard rate cut off point

You will also be liable for USC and PRSI.

Revenue will calculate your liability if you submit your return early. I think that may be the way to go for you.

The total tax of all my earnings will be less than the single person tax credit. My total earnings will be less than 10000 so I wont have to pay USC and isnt the prsi a voluntary contribution so in theory I own nothing right?

Mr. Incognito

USC is 2% up to 10,036 so you'll have to pay that on your gross income

You will have to pay that

PRSI is not voluntary. If you don't pay it you will not get a pension.

Personal Credit for 2012 is only 1,630. I presume then that your qualifying expenses are over 2,000??

namenotavailablE

Point of clarification- if earnings in 2012 and 2013 are under 10036 then no USC is payable. Once earnings are 10036 or greater then 2% is payable on 10036.