What is Sole Trader (Ireland)?
A sole trader in Ireland is a self-employed person trading in their own name (or under a registered business name). They have unlimited personal liability and are taxed on profits via Form 11 self-assessment, paying Income Tax, PRSI and USC on net earnings.
Current Rate (Calendar year. Form 11 due 31 October (or mid-November via ROS).)
Income Tax 20% / 40%, PRSI Class S 4.1%, USC bands as for employees
Example
A freelance graphic designer earns €60,000 profit in 2025. They file Form 11 by 31 October 2026, paying income tax, PRSI and USC plus preliminary tax for 2026 (typically 100% of 2025 liability).
Related terms
An Irish private limited company (Ltd, formerly LTD or Limited By Shares) is the most common business entity in Ireland. It is a separate legal entity from its owners, with limited liability, and is governed by the Companies Act 2014. Companies must have at least one EEA-resident director or hold a Section 137 bond.
Preliminary tax is Ireland's pay-on-account system. Companies pay 90% of expected current year liability (or 100% of prior year for 'small' companies with prior CT under €200,000) one month before year-end. Self-employed individuals pay 90% of current year or 100% of prior year by 31 October each year.
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