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. A sole trader and self-employed are often used interchangeably. 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. 

Sole traders can manage their tax registration online through Revenue’s eRegistration service. 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. 

Are You a Sole Trader? Register for Revenue with Chern&CO

Registering for revenue as a sole trader may seem a piece of cake. However, you need to be prepared for the confusing moments that may occur throughout the process. Let Chern & Co specialists handle the sole trader registration with revenue for you at the affordable price of €100. Contact us to learn more, our managers are open for consultations!