Everything you need to go independent in Ireland. Day rate calculator, tax guide, invoicing, and business setup.
📊 Day Rate Calculator
Convert between salary and contractor day rates — accounting for Irish tax, pension, and expenses.
🏗️ Business Setup
💶 Tax Guide
📄 Invoicing
💡 Pro Tips
🏗️ Sole Trader vs Limited Company
The two main structures for freelancing in Ireland. Your choice affects tax, liability, and admin burden.
Factor
Sole Trader
Limited Company
Setup cost
Free (register with Revenue)
~€200-500 (CRO filing)
Tax rate
Income Tax (20-40%)
Corporation Tax (12.5%)
Personal liability
Unlimited (personal assets at risk)
Limited to company assets
Admin burden
Lower (self-assessment)
Higher (annual returns, accounts)
Credibility
Good for small projects
Better for enterprise clients
Best for
Income under €75K
Income over €75K or high-risk work
💡 Most Irish IT contractors operate through a limited company for the 12.5% corporation tax rate and liability protection. Consult an accountant — it typically pays for itself above €75K.
📋 Setup Checklist
Register with Revenue (TR1 form for sole trader, TR2 for company)
Get a PPS Number (if you don't already have one)
Open a business bank account (AIB, BOI, and Revolut Business all work)
Register for VAT if turnover exceeds €37,500 for services
Get professional indemnity insurance (€300-800/year)
Register your company name with the CRO (limited company only)
Set up an accounting system (Xero, Surf Accounts, or Excel)
Consider joining a contractor umbrella if you want minimal admin
💶 Irish Tax for Contractors (2026)
Understanding your tax obligations is essential. These are the key rates and thresholds:
Tax
Rate
Notes
Income Tax (lower band)
20% (first €42,000)
Single person threshold
Income Tax (higher band)
40% (above €42,000)
Married couple: €51,000 one-earner
USC (Universal Social Charge)
0.5-8%
Bands: 0.5% up to €12,012; 2% to €25,760; 4% to €70,044; 8% above
PRSI (Class S — self-employed)
4%
Minimum €500/year
Corporation Tax
12.5%
Limited company only — on trading profits
VAT
23%
Must register if services turnover > €37,500
⚠️ Preliminary Tax: Self-employed must pay preliminary tax by 31 October each year (100% of prior year liability or 90% of current year). Miss this and you'll face interest and surcharges.
💡 Deductible expenses include: home office costs (portion of rent/mortgage), equipment, software, travel to client sites, professional development, accountant fees, insurance, and phone/internet.
📄 Invoice Requirements
Irish invoices must include specific information to be legally valid and VAT-compliant:
Your name/company name and address
Your VAT number (if VAT registered)
Client's name and address
Unique sequential invoice number
Date of issue and date of supply
Description of services provided
Amount excluding VAT, VAT amount, and total
Your bank details for payment
📋 Sample Invoice
INVOICE
INV-2026-001
Shóna Ní Uaid Consulting 12 Grand Canal Dock Dublin 2, D02 XY45 VAT: IE1234567T
Bill To: TechCorp Ireland Ltd Barrow Street, Dublin 4
Date: 11 Feb 2026 Due: 11 Mar 2026
Description
Days
Rate
Amount
Marketing Strategy Consulting — February 2026
15
€550
€8,250.00
Campaign Performance Audit
3
€550
€1,650.00
Subtotal
€9,900.00
VAT @ 23%
€2,277.00
Total Due
€12,177.00
Payment: AIB Business Account — IBAN: IE29 AIBK 9311 5212 3456 78 — BIC: AIBKIE2D Payment terms: 30 days net
💡 Contractor Pro Tips for Ireland
Get an accountant from day one. A good contractor accountant (€1,000-2,000/year) will save you multiples in tax optimisation and stress.
Set aside 30-35% for tax. Open a separate savings account and transfer immediately when paid. Never spend your tax money.
Invoice immediately. Don't wait until month-end. The faster you invoice, the faster you get paid.
30-day payment terms are standard in Ireland. Some multinationals push 60 days — negotiate hard on this.
Build a 3-month financial buffer before going independent. Gaps between contracts happen — be prepared.
Network relentlessly. Most Irish contractor roles come through recruitment agencies (CPL, Hays, Prosperity) and direct referrals.
Keep your CV updated on job boards even while on contract. The best time to find the next gig is while you're still billing.
Consider income protection insurance. As a contractor, you don't get sick pay. A policy costs €50-100/month and protects your income.
💡 Top platforms for Irish contractor roles:Ework, CPL, Hays, Prosperity, LinkedIn, and direct company careers pages. Day rates in Dublin tech range from €450-800+.