Young man setting up a business

tikka56

Hi everyone. I'm 25, have travelled and worked and volunteered for a few years, and now have come back to Ireland to work, and am setting up my own business. I really know sweet FA about the Irish tax system.

I have two questions.

One, as a self-employed person, I won't be going with PAYE. How much can a self-employed person earn before paying taxes? Is that even possible? I am living at home atm and need to get myself off the ground financially.

Two, is it possible to opt out of PRSI as a self-employed person? You see, I want to have my own private health care and eventually retirement plan, be responsible for myself, and I DO NOT see myself or my generation getting a pension as we get older, that the older people are getting today. If you look at the demographics of the Western world in general, it's pretty bleak.

Thank you for your time.

CIARAN_BOYLE

tikka56 wrote: »

Hi everyone. I'm 25, have travelled and worked and volunteered for a few years, and now have come back to Ireland to work, and am setting up my own business. I really know sweet FA about the Irish tax system.

I have two questions.

One, as a self-employed person, I won't be going with PAYE. How much can a self-employed person earn before paying taxes? Is that even possible? I am living at home atm and need to get myself off the ground financially.

Two, is it possible to opt out of PRSI as a self-employed person? You see, I want to have my own private health care and eventually retirement plan, be responsible for myself, and I DO NOT see myself or my generation getting a pension as we get older, that the older people are getting today. If you look at the demographics of the Western world in general, it's pretty bleak.

Thank you for your time.

One, once you earn 5k you will have to pay prsi, you earn 12k you will have to pay usc once you earn, once you earn 13k you will have to pay paye.

Two prsi for self employed individuals is at a lower rate of 4%. You cannot avoid this.

exaisle

(with due respect to CIARAN_BOYLE)

Three - if your business is a vatable service you have to register for VAT if your turnover is above €37500 and if you're selling vatable goods you have to register if your turnover is above €75000.

Four - if you employ anybody, you'll probably have to pay employer's PRSI of up to 10.85% of their gross pay.

That's without mentioning things like Relevant Contracts Tax, Professional Services Withholding Tax, Capital Gains Tax, Capital Acquisitions Tax....the list is almost endless.

Welcome to self employment.

endacl

Five - https://www.localenterprise.ie/

Ash.J.Williams

Taxation.... The fastest way to jail... Be careful and prepare to pay a lot of tax.

CIARAN_BOYLE

exaisle wrote: »

(with due respect to CIARAN_BOYLE)

I limited myself to his specific questions but yes good point.

Geuze

tikka56 wrote: »

Two, is it possible to opt out of PRSI as a self-employed person? You see, I want to have my own private health care and .

PRSI is nothing to do with healthcare.