Advice on Tax when starting a small business

Moggaman

Hi
I was hoping someone could advise me.
I am a Public Servant (approx 70k). My wife has started working for herself. She will earn about 7k to 10k in the year. Approx Half of this is cash.
We have been jointly assessed for about 10 years now. She was working in paid fulltime employment until about 2015 and has been working fulltime in the home since.
What is the best option for us/her in terms of tax and would she lose any existing credits because of it. Does she need to become a sole trader?
Thanks
M

Geuze

She has an unused tax band that she can use.

It's 24,800.

So her first 25k approx will be taxed at the lower rate.

She also may be entitled to the Earned Income tax credit, check that.

https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/income-and-employment/earned-income-credit/index.aspx


Ye may lose the Home Carers tax credit, depending on how much she earns.