Like pensions, income protection policies are very tax efficient.
Any premiums paid by a self-employed person are allowed for tax relief for up to 40%. Pensions are one of the most tax-efficient investments you can make. Be aware, however, that Earned Income Tax Credit can only be applied to trading income and is not available against investment or rental income. Assets can include such items as a car, computers, office furniture, or any plant and machinery that you need for running your business.Īs a self-employed person, you can claim the Earned Income Tax Credit of €1,350 or 20% of your qualifying earned income, whichever is the lower. These include phone bills, motor expenses, insurance costs, and materials.Īssets can be claimed over a period of 8 years. There are many common contractor or freelancer expenses you may be able to claim. Any expenses are deducted from your profits, so the higher your expenses, the lower your taxable profits. Appoint a Reliable Tax AgentĬontractors can claim legitimate business costs as expenses, which can be offset against income. Below are 10 of the most effective tax-saving tips that could help reduce your tax liability.ġ. However, a combination of effective planning and ensuring you avail of all applicable tax reliefs may well reduce your tax bill.
If you are an independent contractor operating in Ireland, whether through the RCT system (Relevant Contracts Tax) or not, you’ll need to declare your income to the Revenue Commissioners and pay tax through the self-assessment tax system.
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