How does Preliminary Tax work for self-employed in Ireland?
Preliminary Tax is an advance payment of your current year's income tax liability, paid in October/November alongside your previous year's tax return. For 2024, preliminary tax is due by 14 November 2024 and must be at least whichever is the lower of: 1. 90% of your actual 2024 Income Tax + USC + PRSI liability 2. 100% of your 2023 liability 3. 105% of your 2022 liability (only if paying by Direct Debit) Most self-employed people pay 100% of last year's liability as a safe harbour — this avoids any surcharge even if current year income is higher. If you pay less than the required amount, Revenue charges a surcharge (5% on the shortfall up to €12,695). Preliminary tax is paid via ROS (Revenue Online Service) using Form 11. It covers Income Tax, USC, and PRSI together.
- Advance payment of current year tax, due with Form 11 in November
- Safe option: pay 100% of previous year's total liability (income tax + USC + PRSI)
- Alternatively: estimate 90% of current year liability
- Underpayment triggers a 5% surcharge on the shortfall
- Paid via ROS using Form 11 or a separate preliminary tax payment