How to register as a sole trader in Ireland

1. Register for income tax as self-employed

You register with Revenue as a self-assessed taxpayer through myAccount or ROS using Revenue's online eRegistration service (this replaced the old paper TR1 form). You'll tell Revenue what the business does, when you started trading and roughly what you expect to earn.

2. Register a business name (if you use one)

If you trade under any name other than your own full name — "Murphy's Painting", for example — you must register it with the CRO as a business name. See how to register a business name.

3. Check whether you need to register for VAT

At the time of writing you must register once your turnover exceeds or is likely to exceed €42,500 for services or €85,000 for goods in a 12-month period. Some businesses register voluntarily so they can reclaim VAT on start-up costs. Thresholds change in Budgets, so check with Revenue or your accountant.

4. Understand your tax calendar

• You file a Form 11 income tax return each year, normally by 31 October (a little later if you pay and file through ROS).
• From your second year you pay preliminary tax — an estimate of the current year's tax — at the same time.
• Keep receipts and records for six years.

5. Get set up to be paid

Open a separate bank account for the business (strongly recommended, even though not legally required), set up invoicing, and decide how customers will pay you — bank transfer, payment links or a card terminal.