If you're self-employed in Ireland, you are responsible for your own tax and PRSI. This means:
- You must register with your local Revenue Office as self-employed
- You must Pay and File your taxes through a self-assessment tax return each year and declare all your income
- You must pay tax on the profits you make during the tax year
Do You Need To File a Tax Return?
If you're self-employed in Ireland, you must file your taxes through an annual tax return called a self-assessment tax return. You are required to declare all your earnings and any other income you get and this information will be used to work out how much tax you have to pay.
The tax office usually issues your self-assessment tax return each year when the tax year finishes. If you receive one you must fill it out even if you don't think you had self-assessable income. You must file your tax return and pay your taxes by October 31st or you will face a surcharge and interest on any money owed.
NOTE: Even if you only worked for part of the year as self-employed, and were PAYE for the rest of the time, you will still need to file your tax return through a self-assessment tax return.
What Is Self Assessment?
The self-assessment system in Ireland is used to report income or capital gains, or to claim tax allowances against your tax bill. It is called self-assessment because you are responsible for making sure the details you provide are correct and ensuring that you pay the right amount of tax – even if you don't actually work out the tax yourself.
When you get your self-assessment forms at the end of the tax year you will need to fill it in with full details of all taxable income and gains you received in the year, and you can claim allowances on it as well. It must be filed and all tax paid by October 31st following the end of the tax year. Interest of just under 10% per annum is charged on all late payments of tax.
Filing your own self-assessment tax return can be very confusing and complicated.
Register online today and let tax-refunds.ie sort it out for you.
When do I have to file my tax return?
The tax year in Ireland is from January 1st to December 31st. As a self-employed worker you will receive your self-assessment tax forms at the end of the tax year and must file them and pay all your taxes by October 31st or you will incur interest and surcharges.
How can Tax–Refunds.ie help?