Sole trader or Ltd?

guerngirl

Registered User
Messages
107
I am moving from being a PAYE worker to working from home for myself (copywriting etc). For tax purposes am I better off simply registering for income tax with Revenue and filing an F11 each year or setting up as a Limited company? I don't expect to have a high turnover as I will work part-time for a relatively modest hourly rate.
 
A principal reason why a person uses a company is for limited liability - if you aren't likely to get sued then you may not want to go down this route. If this is irrelevant then with a modest income it may be easier for you to go down the sole trader route (i.e you personally and not using a company). There are pros and cons for each option but at modest income levels the extra cost of running a company may not be worth it.

Watch the vat situation and this applies whether you are a sole trader or a company. It your turnover is likely to exceed €37,500 in a rolling 12 month period then you are required to register for vat. If all of your customers are business customers (and thus able to reclaim the vat) it may be worth your while registering for vat as you can reclaim the vat on the business expenses your incur. best of luck
 
Last edited:
Back
Top