How to Set Up as a Sole Trader in Ireland - Complete Guide

Setting up as a sole trader in Ireland is simpler than many tradesmen expect. There is no company to register, no solicitor needed, and no minimum capital. You register with Revenue, start trading, and file a tax return each year.

This guide walks through every step, from getting your PPS number to your first VAT return, with all requirements verified against Revenue.ie and citizensinformation.ie.

What is a sole trader in Ireland?

A sole trader is the simplest form of self-employment. You trade in your own name (or a trading name), you own all the profits, and you are personally responsible for any debts. There is no legal separation between you and the business.

Most tradesmen starting out in Ireland operate as sole traders - plumbers, electricians, builders, roofers, tilers. It is the lowest-cost, lowest-admin structure for a one-person trade business.

Do you need a PPS number?

Yes. Your Personal Public Service (PPS) number is required to register for tax with Revenue. Irish citizens and most long-term residents already have one. If you are new to Ireland or do not have a PPS number, you apply for one through the Department of Social Protection.

You will need proof of identity and proof of address. PPS applications are handled in person at your local Intreo Centre or Social Welfare office.

Step-by-step: how to set up as a sole trader in Ireland

Step 1: Register for Income Tax with Revenue

Register for self-assessment (income tax) with Revenue online through myAccount at revenue.ie. If you do not have a myAccount, set one up first using your PPS number.

Complete Form TR1 (available through myAccount or ROS). This registers you for:

• Income Tax (the main tax on your profits)
• Pay Related Social Insurance (PRSI) - Class S for self-employed
• Universal Social Charge (USC)

If you expect your turnover to exceed the VAT threshold (€40,000 for services), you can register for VAT at the same time.

Step 2: Set up ROS access

ROS (Revenue Online Service) is where you file your annual tax returns, pay tax, and manage your VAT returns. You need a ROS digital certificate to access it. Apply through Revenue's website - a code is sent to you by post to complete the setup.

ROS is separate from myAccount. myAccount is for personal tax. ROS is for business and self-employment tax.

Step 3: Open a business bank account

There is no legal requirement for a sole trader to have a separate business bank account in Ireland - but it is strongly recommended. Keeping business transactions separate from your personal account makes it dramatically easier to track income, calculate VAT, and prepare your annual tax return. It also helps if Revenue ever audits you.

Most Irish banks offer sole trader accounts (AIB, Bank of Ireland, Ulster Bank). Fintech options (Revolut Business, N26) are also available and often have lower fees.

Step 4: Register a business name (optional)

If you trade under a name that is not your own full name, you must register that trading name with the CRO (Companies Registration Office). This is separate from Revenue registration and costs €20 online. For example, “John Murphy Plumbing” is a trading name if your legal name is John Patrick Murphy.

Trading name registration does not create a separate legal entity - you are still a sole trader personally responsible for all debts and obligations.

Step 5: Register for VAT (if required or beneficial)

You must register for VAT once your turnover exceeds €40,000 in any 12-month period. You can also register voluntarily below that threshold - particularly worthwhile if you have significant material costs to reclaim. See our full guide to the VAT threshold in Ireland.

Step 6: Set up basic record-keeping

Revenue requires you to keep records of all income and expenses for 6 years. At minimum, keep:

• All invoices you issue to customers
• All receipts for business expenses (materials, fuel, tools, phone, insurance)
• Bank statements

A simple spreadsheet works for a sole trader with modest turnover. As you grow, accounting software saves time at year-end.

What taxes does a sole trader pay in Ireland?

As a self-employed sole trader in Ireland, you pay three charges on your profits:

Profit is your income minus allowable business expenses. Allowable expenses include materials, tools, vehicle costs, insurance, professional fees, and phone. You do not pay tax on expenses, only on net profit.

When do you file your tax return?

Sole traders in Ireland file an annual income tax return (Form 11) through ROS. The key deadlines:

• 31 October each year: Deadline to pay any preliminary tax (90% of the current year's estimated liability, or 100% of the prior year's liability)
• 31 October each year: Deadline to file the prior year's Form 11 (or November 14 if filing and paying through ROS)

So in October 2026, you would file the 2025 Form 11 and also pay a preliminary amount for 2026. This can feel like a double payment in the first year - planning for it helps.

Sole trader vs limited company - which is right for you?

Most tradesmen starting out should operate as sole traders. A limited company makes sense once your profits are significant and you want to retain money in the business at the lower corporation tax rate (12.5% in Ireland), but the increased accounting costs and compliance requirements make it unnecessary below around €80,000-€100,000 net profit.

Get advice from an accountant once you reach that point. The crossover is personal to your situation.

What about public liability insurance?

Public liability insurance is not a legal requirement for sole traders in Ireland - but it is essential in practice. Most commercial customers (landlords, management companies, builders) will require you to have it before they hire you. Typical coverage is €6.5 million liability.

Employers liability insurance is required if you employ anyone, even temporarily.

Summary: setting up as a sole trader in Ireland

1. Get a PPS number if you do not have one
2. Register for self-assessment (Form TR1) through Revenue myAccount
3. Set up ROS access for online filing
4. Open a business bank account
5. Register a trading name with the CRO if you trade under a business name
6. Register for VAT if your turnover will exceed €40,000 (or voluntarily if beneficial)
7. Keep records of all income and expenses from day one
8. File your Form 11 tax return annually by the October deadline

See our more detailed guide on how to register as self-employed in Ireland for the exact steps online. For VAT-specific guidance, see the complete VAT guide for sole traders in Ireland.

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