How to Register as a Sole Trader in Ireland

13 March 2026

If you are a plumber, electrician, carpenter, or any other tradesperson planning to work for yourself in Ireland, you need to register as a sole trader with Revenue. It is the simplest business structure available, and most tradespeople start here. This guide walks through everything you need to do, from getting your tax affairs in order to the practical steps that come before you take on your first job.

What Is a Sole Trader?

A sole trader is a self-employed person who runs their business as an individual. There is no legal separation between you and your business. You personally own all the assets, keep all the profits, and are personally liable for any debts. Unlike a limited company, there is no separate legal entity. This makes it straightforward to set up but means your personal assets are on the line if things go wrong.

For most tradespeople starting out, sole trader status is the right choice. It is simple, cheap to maintain, and gives you full control. You can always incorporate later if your business grows to a point where it makes sense.

Register with Revenue

The first and most important step is registering with the Revenue Commissioners. You do this by completing a TR1 form through the Revenue Online Service (ROS) at ros.ie. If you do not already have a ROS account, you will need to register for one using your PPS number.

On the TR1 form you will provide:

Your personal details (name, address, PPS number, date of birth)
The nature of your business (e.g., plumbing services, electrical contracting)
Your expected start date
An estimate of your expected income for the first year
Your bank account details for any tax refunds

Once Revenue processes your registration, you will be set up for Income Tax, PRSI (Class S for self-employed), and the Universal Social Charge (USC). If your turnover is expected to exceed the VAT thresholds (currently €37,500 for services or €75,000 for goods), you should also register for VAT at this stage. You can read more about that in our guide on how to charge VAT as a sole trader.

Taxes You Will Pay

As a sole trader, you are responsible for paying your own taxes. There is no employer to deduct them for you. The main taxes are:

Income Tax — 20% on the first €42,000 of taxable income (2026 rate for a single person), and 40% on anything above that. Tax credits and allowances reduce the actual amount you pay.
PRSI (Class S) — 4% of all income, with a minimum annual contribution of €500. This funds your State pension and other social insurance benefits.
USC (Universal Social Charge) — a tiered charge on gross income. The rates for 2026 are 0.5% on the first €12,012, 2% up to €25,760, 3% up to €70,044, and 8% above that.

You pay these through the self-assessment system. Each year you file a Form 11 income tax return through ROS, declaring all your income and claiming any allowable expenses. The deadline is 31 October (or mid-November if you file and pay online through ROS). You may also need to make preliminary tax payments, which are advance payments towards the current year's tax bill, due at the same time.

Business Name Registration

If you trade under your own name (e.g., "John Murphy Plumbing"), you do not need to register a business name. However, if you want to use a different trading name (e.g., "Murphy Plumbing Solutions" or "Southside Electrics"), you must register it with the Companies Registration Office (CRO) at cro.ie.

Business name registration costs €20 online and is straightforward. You fill in the RBN1 form with your proposed name, your personal details, and the nature of your business. The CRO will check that the name is not already taken or too similar to an existing registration. Once approved, you receive a certificate that you should keep on file.

Note that registering a business name does not give you exclusive rights to it. It simply means you are legally permitted to trade under that name. If brand protection is important to you, consider registering a trademark separately through the Intellectual Property Office of Ireland.

Insurance

Before you start taking on work, you need the right insurance in place. The main types relevant to tradespeople are:

Public liability insurance — covers claims from members of the public for injury or property damage caused by your work. Most customers and main contractors will require proof of this before they let you on site. Typical cover is €2 million to €6.5 million.
Employer's liability insurance — required by law if you hire any employees, even part-time or casual workers. It covers claims from employees who are injured at work.
Professional indemnity insurance — covers claims arising from professional advice or services. More relevant for design-focused trades or if you provide consultancy.
Tool and equipment insurance — covers theft or damage to your tools, whether in your van, on site, or at home. Standard motor insurance rarely covers tools stored in a vehicle.
Commercial vehicle insurance — if you use a van or truck for work, it must be insured for commercial use. Using a personal motor policy for business purposes can void your cover.

Shop around and get multiple quotes. Insurance costs vary significantly between providers, and a broker who specialises in trades can often find better deals than going directly to insurers.

Keeping Records

Revenue requires you to keep accurate records of all your income and expenses. You must retain these records for six years from the end of the tax year they relate to. At a minimum, you need to track:

All invoices you issue (with sequential invoice numbers)
All receipts for business purchases (materials, tools, fuel, insurance, etc.)
Bank statements for your business account
Mileage logs if you claim motor expenses
Records of any assets you purchase for the business (vans, equipment, etc.)

Many tradespeople start with a folder of receipts and a spreadsheet, which works for a while. As your business grows, dedicated software makes this much easier. Workcanon handles invoicing, quoting, and customer records in one place, so your paperwork stays organised from day one.

Open a Business Bank Account

While there is no legal requirement for a sole trader to have a separate business bank account, it is strongly recommended. Mixing personal and business transactions makes your bookkeeping significantly harder, increases the chance of errors on your tax return, and makes a Revenue audit much more stressful.

Most Irish banks offer business current accounts with monthly fees ranging from €5 to €10. You will need proof of identity, proof of address, your Revenue registration confirmation, and details about your business activities. Some banks can take several weeks to open a business account, so apply early.

Trade-Specific Requirements

Depending on your trade, there may be additional registration or certification requirements:

Electricians — must be registered with Safe Electric (formerly RECI) to carry out restricted electrical work. You need a qualified electrician certificate from a recognised body such as QQI or ETB.
Plumbers — while not legally required to be registered, the Register of Gas Installers of Ireland (RGII) registration is mandatory if you work with gas. Many customers also look for Registered Plumber status through the Construction Industry Register Ireland (CIRI).
Builders and contractors — anyone carrying out building work above a certain value should be registered with the Construction Industry Register Ireland (CIRI). While registration is currently voluntary for most builders, it is increasingly expected by customers and may become mandatory.
All construction workers — you need a valid Safe Pass card to work on any construction site in Ireland. The card is valid for four years and requires completing a one-day training course.

Allowable Expenses

One of the main benefits of being a sole trader is that you can deduct legitimate business expenses from your income before calculating your tax bill. Common allowable expenses for tradespeople include:

Materials and supplies used for jobs
Tools and equipment (items over a certain value are depreciated over several years as capital allowances)
Vehicle costs — either actual costs (fuel, insurance, tax, maintenance) proportional to business use, or civil service mileage rates
Insurance premiums (public liability, professional indemnity, etc.)
Phone and broadband costs (business portion)
Accounting fees
Software subscriptions used for business (invoicing, scheduling, etc.)
Protective clothing and uniforms
Training and certification costs
Advertising and website costs

Keep receipts for everything. If you cannot prove an expense, Revenue will disallow it. If you work from home, you may also be able to claim a portion of household expenses (heating, electricity, broadband) based on the space and time used for business activities.

Getting an Accountant

You are not legally required to hire an accountant, but most sole traders find it worthwhile. A good accountant will ensure you claim all allowable expenses, file your returns correctly and on time, and flag any issues before they become problems. Expect to pay between €500 and €1,500 per year for a sole trader, depending on the complexity of your affairs and your location.

Look for an accountant who has experience with tradespeople or small businesses. They will understand the common expenses, the nuances of motor costs, and the specific challenges you face. Ask other tradespeople in your area for recommendations.

Key Takeaways

Register with Revenue using the TR1 form through ROS as your first step
You will pay Income Tax, PRSI (Class S), and USC on your profits through the annual self-assessment system
Register a business name with the CRO if you trade under anything other than your own name
Get public liability insurance before you start taking on work
Keep records of all income and expenses for at least six years
Open a separate business bank account to keep your finances clean
Check for trade-specific registration requirements (Safe Electric, RGII, Safe Pass, CIRI)
Claim all allowable business expenses to reduce your tax bill
Consider hiring an accountant who understands the trades