Sole trader start up!

Smallprop

Hello all!
I've received a job offer but would mean I would have to go as a sole trader and contract back into them!
The rate I would be getting would be 600 euro a week and my only expense would be roughly 100 euro diesel a week!
Can anyone break this down for me in English and numbers as to what I would have to pay on tax and what my average weekly income would be!
I have no idea of the complicated tax system which we now have and I am clueless as to see if this job offer is worth taking compared to my current job!
I know I have to see an accountant for definite answers but I'm just looking for a idea!
Cheers!!

Mr. Incognito

There is a guide to sole traders in the stickies

Smallprop

Mr. Incognito wrote: »

There is a guide to sole traders in the stickies

In the stickies?!

The are the threads at the top with links to the most commonly asked questions

Here are the guides

http://www.boards.ie/vbulletin/showthread.php?t=2055559218

swanvill

Hi Smallprop,


Based on the information given your average weekly GROSS income would be €500, what your income net of tax, PRSI & USC depends on your tax credits, tax threshold etc.

For an idea you could always look at your last payslip & if your gross pay was €500, then what your net will be roughly the same similarly if your last payslip gross pay was €450, then you could estimate your take home pay by multiplying it by 1.11 (€500/€450).

It would be best that you talk to an accountant about being self employed, tax obligations and what receipts etc you need to keep to be tax compliant. Remember your accountant's fee will be tax deductible :-)

dbran

This assumes that the €100 of diesel costs is incurred as part of a business journey and not simply from home to the normal place of work.

dbran

bannerman2005

Hi Smallprop,

The best thing would be to chat to a local accountant.

As stated earlier only costs wholly and exclusively for the trade are considered deductible so if there was private usage included in those diesel costs then that would have to be adjusted.

Normally companies would require you to set up a company and invoice them through the company instead of as a soletrader but maybe things have changed.

Eireog1

Smallprop

If the diesel is soley for the use in the business then you would pay tax, usc & prsi on the 500 profit per week this would roughly amount to 110 per week so your take home pay would be 390. You can also deduct any cost associated with the business such as accountancy fees. Don't forget probaly no paid holidays or any other entitlement would be due if working a soletrader.
Hope this helps with the decision.

Smallprop

Iv decided to go for it and got myself an accountant which is going to cost me. 400&vat when I have to do my tax return. She told me to save 150 a week out of my 600 a week and I will have enough to cover my tax bill, which I truly hope will!!

I have a van so I do use it during work also, so my maintenance of that and diesel are deductible!