Preliminary tax for sole trader income.

Just thinking ahead about preliminary tax bills in the next 2 years.
Commenced sole trader business in ireland in 2024, so my 2025 preliminary tax will be based on 100% of 2024 income tax bill. I've taken on a lot of work in 2025 so my income and hence tax will be higher. I plan to scale back in 2026 so income will be significantly lower then 2025, basing my 2026 preliminary tax bill on 100% of 2025 may place my finances under pressure given the planned scale back in work, what's best way to approach this. I will of course discuss with my accountant but hope to gain some insight here

Every_blooming said:

I plan to scale back in 2026 so income will be significantly lower then 2025, basing my 2026 preliminary tax bill on 100% of 2025 may place my finances under pressure given the planned scale back

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Then don't base your 2026 preliminary tax bill on 100% of 2025.

I've read you can base it on 90% of that years earnings, which would be great. Is it acceptable to change method of calculating preliminary tax for the 2026 year?

If you don't understand even the absolute basics of preliminary tax in this your second year of running a sole trader business, there are likely to be other critical matters that you've neglected too.

You urgently need to make a small time and financial investment to correct this, which will include getting appropriate professional advice.

If you leave it too late, you could end up in an absolute mess.

Thanks for the advice. I have an accountant. I was just wanting to get informal information before approaching them next year with this issue.