What rate of tax will I pay as a self employed individual?

RS6man

Hi,

I've had a read through previous posts and I can't seem to find a diffinitive answer to this.

Please also excuse my ignorance with these questions as I haven't a clue about self employment taxation.

If I earn €35k a year as a self employed person what rate of tax will I pay?

Do self employed people pay USC and PRSI ?

One last question,

If I earned €35k a year as a PAYE worker and also had a pension (to which the company paid 50% of the contributions) and they paid 75% of my health insurance premium what type of salary should I be looking to earn as a self employed person to make up for the loss of these benefits? €40k?

Is there anything else I'd be missing out on as a self employed person besides the ability to claim the dole?

Thanks for reading. Any help is appreciated.

seamus

The rate of income tax is the same, percentage-wise, but your tax credits will be different (read: less), meaning that a self-employed person earning €35k will pay more income tax than a PAYE person in the same position.

Swings and roundabouts though, the self-employed person can do a lot to reduce their "income" by writing off expenses, claiming subsistence, etc.

Yes, you pay USC and PRSI, but not at the same rate as a PAYE employee.

As you're new to self-employment, your best bet is at the very least to book two hours with a tax advisor who can talk you through all of the things you should be doing and should be claiming. It's not a bad idea to use an accountant to submit your income tax return at the end of the year, but can work out quite pricey if you're not earning a lot of money.

RS6man

Thanks for that Seamus.