Sole Trader and Self-employed Revenue Registration in Ireland

When you start working for yourself or decide to set up a business on your own, you are considered self-employed or a sole trader.  Is there a difference? There’s not really much. Whether you call yourself a sole trader or self-employed, the concept is the same: you’re running your own show! A sole trader is one of the major legal frameworks alongside partnership and limited companies. The term sole trader and self-employed applies to many types of businesses whether you are a freelance copywriter or provide any other kind of freelance services, run an online shop, work as an independent plumber, etc. 

As a sole trader, you are responsible for all your business losses and are expected to pay taxes on your own profits. So how to Sole Trader registration with Revenue 

How to Register as a Sole Trader/ Self-Employed in Ireland

A sole trader is the simplest business structure with very little paperwork needed to get started. Before registering for tax, you must obtain a PPSN (Personal Public Service Number). This is a unique reference number needed for dealing with all public services and agencies including Revenue. To obtain PPSN in Ireland both Irish citizens and non-residents need to apply for the Department of Social Protection. 

Your TRN (Tax Registration Number) will be the same as PPSN. 

With Revenue’s eRegistration service, sole traders can easily handle their tax registration online – saving time and reducing paperwork.  ERegistration is cheaper, faster, and more efficient than submitting a paper application. Non-residents of Ireland will need to complete a special Form TR1 (FT) to register for Revenue as sole traders. 

What Taxes Sole Traders Pay?

Sole traders/self-employed pay Class S PRSI contributions. These are paid at a rate of 4% for sole traders earning €5,000 annually or €500 depending on your annual income. Individuals whose annual income from self-employment are less than €5,000, are exempt from paying Class S PRSI. Still, they are welcome to contribute €500 on a voluntary basis. 

If you’re looking for a detailed look at tax obligations for sole traders, this sole trader tax guide is all you need. We surface the current rates of key taxes sole traders should pay in Ireland.

Ready to Launch Your Business Without the Hassle? Let Chern&CO Handle your Sole Trader Registration.

Registering for revenue as a sole trader may seem a piece of cake. In reality, navigating the registration process can be tricky. Why not let experts guide you through it, ensuring a smooth start to your business journey? Let Chern & Co specialists unlock a hassle-free registration experience for just €250. Say goodbye to complex paperwork and hello to professional guidance!

Have questions? Our experienced team is here to help. Schedule a no-obligation consultation today!