Self-Employment Tax in Ireland 2025: No-Jargon Guide for Contractors
Everything from PRSI and USC to allowable expenses and Form 11 deadlines. Complete tax guide for Irish contractors and freelancers.
Ultimate Salary Calculator Team
Our content is written and reviewed by finance and tax enthusiasts to ensure accuracy.
Going solo? Here's the 2025 tax cheat-sheet you wish Revenue wrote.
Core Taxes You'll Pay
Income Tax:
20% on first €44,000, then 40% on remainder
USC (Universal Social Charge):
0.5% / 2% / 3% / 8% on different income bands
PRSI Class S:
4.2% on income over €5,000 (from October 2025)
Tax Registration Requirements
When to Register:
- • Before you start trading
- • Or within 30 days of starting
- • Even if income is below tax thresholds initially
How to Register:
- Complete Form TR1 online at ros.ie
- Provide business activity details
- Submit supporting documentation
- Receive tax registration number
Allowable Business Expenses
Fully Deductible:
- • Office equipment and supplies
- • Professional insurance
- • Business travel and accommodation
- • Training and professional development
- • Accountancy and legal fees
- • Internet and phone bills (business use)
Home Office:
Claim portion of mortgage interest, utilities, and maintenance proportional to office use
Motor Expenses:
Business mileage at Revenue approved rates, or proportional actual costs
Form 11 Filing Requirements
Key Deadlines 2025:
31 October 2025: Form 11 filing deadline for 2024 tax year
31 October 2025: Balance of tax due for 2024
31 October 2025: Preliminary tax for 2025 due
What to Include:
- • All business income received
- • Allowable business expenses
- • Capital allowances on equipment
- • Any PAYE income from other sources
Preliminary Tax Strategy
Three Options (choose lowest):
- 90% of current year's liability
- 100% of previous year's liability
- 105% of pre-previous year's liability
Pro Tip:
If income varies significantly year-to-year, calculate all three options to minimize preliminary tax
Record Keeping Essentials
Documents to Keep (6 years):
- • All invoices sent to clients
- • All receipts for business expenses
- • Bank statements showing business transactions
- • Mileage logs for motor expenses
- • Contracts and agreements
Digital Tools:
Consider cloud-based accounting software to automate record keeping and expense tracking
Example: €50,000 Self-Employment Income
Gross Income: €50,000
Less: Business expenses €8,000
Net Income: €42,000
Income Tax: €42,000 @ 20% = €8,400
USC: ~€1,260 (across bands)
PRSI: €42,000 @ 4.2% = €1,764
Less Tax Credits: -€2,000
Total Tax: ~€9,424
Net After Tax: ~€32,576
Calculate Your Tax Position
Use our Irish salary calculator to estimate your tax liability as a contractor.
Calculate Your TaxFinancial Planning Guide
Learn how to manage irregular income and plan for tax payments.
Financial Planning TipsProfessional Advice
Self-employment tax can be complex. Consider consulting a qualified accountant, especially in your first year of trading.
For official guidance, visit revenue.ie or call Revenue at 01 738 36 36.