How to register as a sole trader with Revenue in Ireland

What it is

A sole trader is someone who works for themselves under their own name: freelancers, consultants, tradespeople, many small shop owners. You must register for income tax with Revenue when you start, and then pay your tax yourself each year through self-assessment.

Non-EEA nationals need an immigration permission that allows self-employment first: see the guide on working for yourself from outside the EEA.

Before you start

You'll need:

• Your PPS number: it's also your tax number.
• The date you start trading.
• A description of your business and the expected turnover.
• Access to myAccount (if you're a PAYE employee) or ROS (Revenue Online Service).

Steps

1. Get your PPS number if you don't have one yet.
2. Register for income tax as a sole trader:
   • if you're also employed (a PAYE taxpayer): in myAccount, under Manage My Record, choose Tax registrations, then Income Tax;
   • if you already have another business tax registration: on ROS;
   • non-residents without online access: on Form TR1 (FT).
3. Register for VAT if your turnover is over €42,500 a year for services or €85,000 for goods (or choose to register below it).
4. Keep records of your income and expenses all year.
5. File Form 11 and pay through ROS by 31 October for the year before, together with preliminary tax for the current year. Filing online on ROS usually gives you a little longer, until mid-November.

Cost

Registering is free. An accountant charges for their help.

Common pitfalls

• Starting before registering. Register when you start trading, not when the tax is due.
• Missing preliminary tax. From your second year you pay part of the next year's tax in advance.
• Forgetting VAT once you pass the threshold.
• Not switching to ROS. After registering, you file and pay on ROS, not myAccount.

When to ask a helper

Ask someone who set up as a sole trader in a similar field recently: they'll know what Revenue asked and how preliminary tax worked in their first year.