SELF EMPLOYED PERSONS
Characteristics
- Are taxed on profits, not turnover
- Expenses incurred for the running of the business are tax allowable (deducted for tax purposes)
- Are taxed on the PAYE tax brackets of the employed persons
- When their turnover exceeds Euro 70,000 annually, audited financial statements must be prepared just like companies
- Must be VAT registered and follow VAT rules and regulations
- Can register as employers and be responsible personally for their staff payroll taxes, just like companies
- Are frequently scrutinized by the VAT and Income Tax offices (more often than companies)
- Are personally liable to VAT and Income Tax offices (unlike companies)
Our Advice
- The legal framework should outweigh the minor tax benefits when deciding whether to incorporate a company.
- Avoid been a self-employed person with employees.
- Always consult with an expert before you make any decision
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.