Common questions from Irish sole traders before choosing an accountant. For a full index of tax and compliance terms see the Irish Business Glossary and FAQ hub.
What expenses can I claim as a sole trader?
Any cost that is wholly and exclusively for the purposes of the business. Common claims include the business proportion of motor running costs (fuel, insurance, motor tax, servicing — with private use excluded), tools and consumables, phone and broadband (business proportion), home office costs (reasonable business proportion) and professional subscriptions. Personal pension contributions are not a trading expense but may qualify for Income Tax relief separately through your Form 11. Sole traders coming to Forti from a DIY approach regularly have unclaimed allowable deductions.
What is Form 11 and when is it due?
Form 11 is the annual self-assessment income tax return that sole traders file with Revenue, declaring all income, expenses, and tax due including Income Tax, PRSI and USC. The normal deadline is 31 October each year. For 2025 income, where the 2025 Form 11, the 2025 balance and 2026 preliminary tax are filed and paid through ROS, the extended deadline is 18 November 2026. Late filing attracts a 5% surcharge on the tax due (max €12,695) if under two months late; 10% (max €63,485) if later. Forti monitors your deadline and files on time, provided complete records are supplied.
What is preliminary tax and how much do I pay?
Preliminary tax is an advance payment towards your Income Tax, USC and PRSI liability for the current tax year. It must normally equal at least the lower of 90% of the current year's final liability or 100% of the previous year's liability. A third option — 105% of the pre-preceding year's liability — may also be available where tax is paid by qualifying direct debit. Underpayment gives rise to interest, not a surcharge. Forti calculates the correct amount as part of the annual service.
Do I need to register for VAT as a sole trader?
VAT registration is mandatory once your turnover exceeds €85,000 for goods or €42,500 for services in any 12-month period. You can also register voluntarily below those thresholds to reclaim input VAT on qualifying business purchases, subject to normal VAT deductibility rules. Forti monitors your turnover and advises on the right timing — missing the threshold without registering creates a Revenue liability from the date it was exceeded.
Do I need a separate business bank account?
Legally, no. But in practice it is one of the most useful things you can do for your bookkeeping. Keeping personal and business money separate means the records are cleaner, the bookkeeping is faster and the risk of incorrect expense claims or Revenue issues is significantly reduced. Most banks offer basic business accounts at low or no cost.
What is the difference between a sole trader and a limited company?
As a sole trader you and your business are the same legal entity — personal liability is unlimited and you are taxed on profits as personal income. A limited company is a separate legal entity with limited liability, and profits are subject to Corporation Tax rather than personal income tax rates. The right structure depends on your turnover, risk exposure and plans. Forti advises on which suits your current situation and when it might make sense to incorporate.
What PRSI does a sole trader pay?
Most self-employed individuals with reckonable income of €5,000 or more are liable to Class S PRSI. For 2026, the blended rate is 4.2375%, subject to a minimum annual contribution of €650. The underlying rate is 4.20% to 30 September 2026 and 4.35% from 1 October 2026. Class S provides access to social welfare benefits including the State Pension (Contributory), subject to qualifying conditions. PRSI is collected through the Form 11 — not through payroll.
My books are in a complete mess. Can Forti still help?
Yes. Forti regularly takes on new clients whose records are months or years behind. The process involves reviewing what exists, establishing the correct opening position, completing any historical catch-up work and then moving to monthly maintenance from there. Historical clean-up is quoted separately after an initial review. The earlier you start the catch-up, the less it costs.
How much does sole trader accounting cost in Ireland?
Forti's Starter plan for sole traders begins at €165 + VAT per month and includes monthly bookkeeping, annual accounts and Form 11 filing. The Growth plan starts at €220 + VAT per month and adds a dedicated accountant, VAT return preparation and monthly management accounts. All fees are fixed — no hourly rates, no charges for routine questions.
Can I switch to Forti from my current accountant?
Yes, and it is straightforward. Forti handles the transition — reviewing your current records, establishing the year-to-date position and taking over from your previous accountant's last filing. You request your records and authorisations from your current accountant; Forti guides you through the steps. There is no gap in service.
