To register a limited company for tax you must have a Companies Registration Office (CRO) number issued by the CRO.
You will also need an Irish bank account so that the Irish Revenue can process repayments and you can make payments of tax as and when you need to.
The requirement to get a bank account can be time-consuming, so allow enough time to do this part of the process before you need to issue any invoices to customers.
When you start a new company, you or your accountants must inform Irish Revenue. If your company is represented by accountants, then the accountants must file an online registration application for you through the Revenue Online System ( ROS )
If your company is not already registered for tax, you have to file one of the following forms with Revenue:
Form TR1 for Irish Resident Companies who have a tax agent/accountants
Form TR2 for Irish Resident Companies who don’t have a tax agent/accountants
If you file a paper form when you should have filed an online form, it will not be processed. The paper copy will be returned to you with an instruction to finish the registration through ROS.
The TR forms can be used to register for:
- Corporation Tax
- Income Tax for Employers ( PAYE )
- VAT or Value Added Tax – Sales Tax
- Relevant Contractors Tax
When do I need to register for VAT as self-employed?
You need to register for VAT if your company sells services and your sales are over €37,500 in a year. if you sell goods then the limit is €75,000. These limits apply pro-rata in that once you go over the monthly amount of €37,500 on a monthly basis ( approximately €3,000 per month ), then you should register for VAT. You don’t wait until you have sales of €37,500 and then register.
Once your company has been registered, you must file all payments and returns online through ROS.
You will be given a new Tax Reference Number to use when trading and filing your tax returns.
If you appoint OSA McQuillan as your accountants we can look after all these requirements and also the bookkeeping that has to take place once you have set up your company and registered. We will get you to sign the appropriate paperwork and register for the relevant taxes. The taxes you need to register for will depend on your activity, whether you intend to employ staff, and what your level of sales is going to be in your new company. If you have a company, then usually you will have to employ yourself as an employee, which is an aspect those new to contracting or self-employment don’t realise.
What is the tax rate for the self-employed in Ireland?
You need to pay the following rates of tax if you are self-employed in Ireland
| Income Tax | PRSI | USC |
|---|---|---|
| 20%(for income up to €33,800) | 4% on all income | 0.5%,2%,4.5%,8% depending on income |
| 40%(for income above €33,800) | or €500 euro (whichever is higher) | 11% applied to everything above €100,000 |
How much should a self-employed person save for taxes?
A self-employed person should usually set aside 25-30% of their income to pay for taxes. It is a good idea to set this money aside as soon as you receive it so you will be prepared and have a good plan in place to keep your finances in order.
