tax issues for 2nd income

kev_now

Hi,

I am designing website's for a few clients on a part time basis as a sole trader. I not sure about how much tax I will have to pay on the income that i receive or if I have to register now as a sole trader. How do I go about getting set up as a sole trader... do I need to fill out any forms for the revenue or cro ? Do I need an accountant to certify accounts like a limited company does ?

I would be really grateful if any body out there who knows could put my mind at ease.

Many Thanks

KR

Victor

If it is a one off, you just need to declare it at the end of year. You would pay the appropriate tax rate, health levy (2%), but probably only 3% PRSI (self-employed). If it's small beer, you can do the accounts yourself (remember to write of expenses agaisnt sales, not income).

If it is ongoing, you might want to register a trading name (€35?) at www.cro.ie

You might mention to the www.revenue.ie that you are doing some extra work. You only need to register for VAT if you expect your sales to exceed €20,000 per year.

shoegirl

The simplest way to handle this if its only going to be a small amount is to declare it at the end of the year. You will need to fill out a tax return (form 12) and declare it as "other income".

Better still, get advice from an accountant, who will also be able to advise ways to minimise taxation on the amount by offsetting expenses etc. If its more than a few thousand, its worth doing.