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Self-Employment in Ireland

Starting a business in Ireland as a Sole Trader is the simplest and most popular way to begin — for example, offering services, working as a tradesperson, consultant, or opening a small shop.

Below is the key information on registration, taxation and available state support.

1. How to register as a Sole Trader?

Unlike a Limited Company, a sole trader does not legally separate the business from themselves — you and your business are one legal entity.

• 1. Registering with the tax office (Revenue):

  • Registration is done online via Revenue MyAccount or eServices (eRegistration).

  • You must register for self-employed taxpayer status (Register for Income Tax).

• 2. Business name registration (if required):

  • If you plan to trade under your own full name, no separate business name registration is needed.

  • If you wish to use a trading name (e.g. Green Valley Gardening), it must be registered with the CRO — Companies Registration Office using form RBN1. Online fee: €20 (cro.ie).

• 3. Bank account:

  Although legally you may use a personal account, it is recommended to open a separate Business Account to keep personal finances separate from business cash flow.

2. Tax system for the self-employed (Income Tax & PRSI)

Self-employed people in Ireland pay tax once a year by filing an annual income return (Form 11). Tax is calculated on net profit (income minus all allowable business expenses).

• Income Tax:

  • 20% standard rate (up to the income threshold of ~€42,000 per year for a single person).

  • 40% above this threshold.

• PRSI (Social Insurance — Class S):

  • 4% of net profit (minimum PRSI contribution: €500 per year). Class S PRSI entitles you to the State Pension, maternity/paternity benefit and certain illness benefits.

• USC (Universal Social Charge):

  • Progressive rate from 0.5% to 8% depending on total income.

3. Value Added Tax (VAT)

VAT registration is only mandatory when your turnover exceeds the following thresholds:

• Supply of services: from €42,500 turnover in a 12-month period.

• Supply of goods: from €85,000 turnover in a 12-month period.

4. State support and grants for starting a business

Ireland has a very strong support system for new entrepreneurs:

• Local Enterprise Office (LEO):

  Every county has its own LEO office (e.g. Mayo LEO, Dublin LEO). They offer:

  • Free or low-cost courses (Start Your Own Business Course).

  • Mentoring consultations (accounting, marketing, legal matters).

  • Micro-loans and development grants.

  localenterprise.ie

• Back to Work Enterprise Allowance (BTWEA):

  If you are receiving Jobseeker's Allowance/Benefit before starting your business, you can apply for the BTWEA scheme. It allows you to retain 100% of your weekly allowance in the first year and 75% in the second year while developing your business.

• Trading Online Voucher Scheme:

  LEO offers a grant of up to €2,500 (with 50% co-funding) for developing an e-commerce website and introducing online trading.