When Do I need to Register for Tax in Ireland?
Sole Trader Tax Registration
As a Sole Trader you do not register or have to pay Corporation Tax as you are taxed as an individual. So, in this case, you will be liable for Income Tax. This is due through a Self Assessment filing on October 31st each year (or mid November if filed online). Important to note is your filing in October is for the previous year. You are also obliged to pay Preliminary Tax for the current year – this is an estimate of your Income Tax, Pay Related Social Insurance (PRSI) and Universal Social Charge (USC). Important – if you underestimate the amount, you may be liable to interest from Revenue. More info on this here.
VAT( Value Added Tax )
Sole Traders are required to register for VAT using the TR1 form when you reach the thresholds below although you can elect to register before you reach the threshold as well. These figures are based on your turnover. More information from Revenue here.
Services – €37,500
Goods – €75,000
Remember when you are registered for VAT you will need to submit returns, usually Bi-Monthly or Quarterly. Even if no VAT is due for the period, you must still submit a nil return.
11Limited Company Tax Registration
Once you have set up your company with the CRO, you will then need to register for tax. These registrations can be done online through your ROS account, or SMEaccounting.ie can also complete this for you.
Irish Corporation Tax
Corporation Tax is the tax levied on your companies profits. Ireland enjoys a low corporation tax rate of 12.5 %. This applies to your trade profits, however, there is also a 25% Corporation Tax rate which applies to any non-trading income i.e. return from investments, property etc. If you are not based in Ireland it is worth checking out this resource from the Irish IDA (Industrial Development Authority).
You can register your business for Corporation Tax via the TR2 form. Or keep scrolling to find out how we can help you.
VAT ( Value Added Tax )
Limited companies are required to register for VAT using the TR2 form when you reach the thresholds below or again you can elect to do so before reaching the threshold.
Services – €37,500
Goods – €75,000
Please note that once you are registered for VAT you will need to submit returns, usually Bi-Monthly or Quarterly. Even if no VAT is due for the period, you must still submit a nil return.More information on this is available from Revenue here.
PAYE ( Pay as you Earn )
Companies need to register as an employer with Revenue in order to pay PAYE. Please note, since January 2019 PAYE Modernisation was introduced leading to major changes in how companies conduct payroll. All payroll must now be completed online in real time meaning employers are obliged to report employees payroll before or at the time payment is made. More details can be found here. All employees will now have a unique RPN (Revenue Payroll Notification) which is needed for payroll. SMEaccounting.ie is an ideal partner to outsource all your payroll requirements.
Struggling with all the various compliance requirements? Need help?
SMEaccounting.ie can advise and take care of all your tax registration requirements. Our accountancy package starts at just €149 per month* and includes the following –
- 1st B1 Annual Return (due 6 months from incorporation)
- Corporation Tax & VAT Registration
- VAT Returns (up to 15 transactions per VAT period)
- Payroll for up to 5 Employees
- 1 hour specialist Business Consulting ( Sales / Marketing / Digital)
*Typical price. Payable Upfront. Available for newly registered companies. Turnover <€130k.
Contact us today to find out how SMEaccounting.ie can help your business.