Finance & Irish taxes · Calculator companion · By K Imports
Sole-trader tax reserve: practical guide
This guide explains how to use the Count.ie sole-trader tax reserve. Estimate Income Tax, Class S PRSI, USC and pension relief on trading profit. Follow the inputs, method and worked example below, then compare your own scenario.
Guide written .
Open the Sole-trader tax reserve calculatorWhat to prepare
- Have the figures for annual profit after deductible business costs (€), annual turnover excluding vat (€) and deductible cash trading costs (€) ready, from a dated document, with the period (annual, monthly or per transaction) that each input expects.
- Choose the tax rules in which the income was earned or the transaction took place, not the year you are checking it.
- Compare your circumstances with the cited Budget 2027 announced tax measures and Official rules and guidance before relying on the headline result.
Understand the inputs
- Tax rules
Options: 2026 — published rules; 2027 — Budget announcement (limited scope).
- Start with
Options: Turnover and deductible costs; Profit after deductible costs.
- Annual profit after deductible business costs (€)
- Costs have already been deducted from this profit. Do not deduct them again. Capital allowances below must not already be included.
Shown when Start with is profit.
- Annual turnover excluding VAT (€)
Shown when Start with is turnover-costs.
- Deductible cash trading costs (€)
Shown when Start with is turnover-costs.
The calculation method
Tax profit is revenue less deductible costs and allowances; pension reduces Income Tax only. Apply selected-year bands, credits, USC and annual Class S PRSI. Budget 2027 profit above €70,044 is unsupported until the USC conflict is resolved. Filing penalties and interest are excluded.
Worked example
Illustrative inputs and their result.
Example inputs
- Tax rules
- 2026 — published rules
- Start with
- Turnover and deductible costs
- Annual turnover excluding VAT (€)
- 90000
- Deductible cash trading costs (€)
- 20000
- Qualifying capital allowances (€)
- 3000
- Annual qualifying pension (€)
- 5000
- Age
- 35
- Jointly assessed, one income
- No
Calculated example result
- Tax Reserve
- €16,381.95
- Cash after costs, tax and pension
- €48,618.06
How to interpret the result
Rates/conditions reviewed against the linked official sources on 5 October 2026. Distinguish a tax saving, a tax bill, cash received and money remaining: they are not interchangeable. An estimate does not establish eligibility, filing compliance or when a refund will be paid.
Change one input of sole-trader tax reserve at a time and record the result; keep a record of the year, date and assumptions so a change in the result can be explained.
Common mistakes to avoid
- Do not mix tax years or apply a newly announced measure to an earlier transaction.
- Avoid counting an allowance, credit, contribution or loss twice.
- Check exclusions and personal circumstances before relying on the headline result.
Assumptions and sources
Rates/conditions reviewed against the linked official sources on 5 October 2026. Confirm the stated scope before relying on the result.
Rules checked . This date comes from the tool’s review notes and applies only to its documented scope, not to every selectable scenario.
Sources and further information
If your case falls outside this scope, use a more suitable calculator or contact us about an unclear method.