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usc/prsi for 2017/18

  • 29-09-2018 1:26pm
    #1
    kingbhome
    Registered Users, Registered Users 2 Posts: 518 ✭✭✭


    For a single male sole trader was my income tax, prsi and usc come to 28% for all my labor. So say if i earned 37.5k i would owe 10500 in taxes

    In 2018 did it change to 27%


Comments

  • #2
    El Grifo
    Closed Accounts Posts: 43 ✭El Grifo


    A single sole trader with taxable income of €37,500 would pay
    Income tax €5,350
    PRSI €1,500
    USC €1,068
    Total €7,918
    This is an effective rate of 21.11% of income going in tax/prsi/usc (€7,918/€37,500)

    Tax on the first €34,500 is 20% and 40% on the balance = €8,100
    Tax credits are €1,650 personal and €1,100 earned income credit
    So net tax becomes €5,350.
    PRSI is 4% on all.
    USC is 0.5% on first €12,012 then 2% on next €7,360 and 4.75% on the balance.

    This assumes the €37,500 is the tax assessable amount after any allowable business expenses.

    Hope this helps.


  • #3
    kingbhome
    Registered Users, Registered Users 2 Posts: 518 ✭✭✭kingbhome


    El Grifo wrote: »
    A single sole trader with taxable income of €37,500 would pay
    Income tax €5,350
    PRSI €1,500
    USC €1,068
    Total €7,918
    This is an effective rate of 21.11% of income going in tax/prsi/usc (€7,918/€37,500)

    Tax on the first €34,500 is 20% and 40% on the balance = €8,100
    Tax credits are €1,650 personal and €1,100 earned income credit
    So net tax becomes €5,350.
    PRSI is 4% on all.
    USC is 0.5% on first €12,012 then 2% on next €7,360 and 4.75% on the balance.

    This assumes the €37,500 is the tax assessable amount after any allowable business expenses.

    Hope this helps.



    Forgot about expenses. If 5k was spent, would the 5k be deducted from the 7.9k tax leaving 2.9k to be paid.


  • #4
    El Grifo
    Closed Accounts Posts: 43 ✭El Grifo


    kingbhome wrote: »
    Forgot about expenses. If 5k was spent, would the 5k be deducted from the 7.9k tax leaving 2.9k to be paid.

    No it doesn’t work like that. You don’t take the expenses off the tax bill you take them off the income of €37,500 leaving you with €32,500 then work out the tax and PRSI and usc in the manner as before. The result is €5,880 of a bill to revenue.


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