Pension Options

Self Employed 

GET IN TOUCH

Self Employed

While we might use the term ‘sole traders’ as a label to refer to all types of self employed individuals in business on their own, in reality it splits into two sub categories:

  • those involved in a trade,
  • and those involved in a profession, e.g. doctor, dentist, solicitor, accountant, etc.

Income tax status

The sole trader is assessed to income tax under Schedule D Case I or II, as appropriate, in respect of their income from the business or practice under the self-assessment system. Pension contributions can be offset against these earnings, within limits, for income tax purposes.

PRSI status

Sole trader contributors pay Class S PRSI @ 4% on all of their trading/professional taxable income, gross deposit interest, and all other taxable investment income, regardless of the level of such income.

 

Employing family members

Many sole traders have a spouse/partner and/or other relatives involved in the business or practice in some manner.

The sole trader, as their employer, can establish an employer sponsored occupational pension scheme for their spouse/civil partner working in the business for PAYE remuneration from the business or practice.

This provides an opportunity for a sole trader to:
make tax deductible contributions for their spouse/civil partner in excess of the limits which would apply to personal contributions made by their spouse/civil partner;

Our Pension Partners

MOORE FINANCIAL
CONSULTANTS
NEWSLETTER

Sign up to our newsletter to keep up to date with all the latest relevant financial information.

    MOORE FINANCIAL
    CONSULTANTS
    NEWSLETTER

    Sign up to our newsletter to keep up to date with all the latest relevant financial information.

      MOORE FINANCIAL CONSULTANTS LATEST NEWS