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Paying tax on "nixers"

  • 10-12-2007 12:01am
    #1
    Eoin
    Registered Users, Registered Users 2 Posts: 21,263 ✭✭✭✭


    Hi all,

    This should be a quick enough question. I've been doing some work outside of my normal 9 to 5 which I will be getting paid for shortly.

    I know I can just declare this at the end of the year, but ideally what I'd like to do is pay the tax as I go along so I don't have the tax money hanging around as this will hopefully be an ongoing thing.

    Am I right in thinking that I can just send in a check to the revenue commissioners for 45% of the cash I get? That's 41% PAYE and 4% PRSI.

    Also, do I have to register as a sole trader to be able to write off expenses (e.g. mileage & phone bills)? If so, is it generally worth your while doing this for ad-hoc work?

    thanks,

    Eoin


Comments

  • #2
    SarahMc
    Closed Accounts Posts: 517 ✭✭✭SarahMc


    You do not have to register as a sole trader to offset expenses against tax.

    AFAIK, you cannot send cheques into revenue mid-year. You will make a tax return in October 2008 for all work done in 2007. You can fill out a TR1 form now to make it earier. You will pay tax on your "nixer" profit, i.e. money earned - expenses. You won't have to pay PRSI (if you are already paying it in your PAYE job), and may not have to pay 41% tax.

    Keep a record of all your expenses, petrol reciepts, phone bill etc. Put 25% of money earned away to pay for tax.


  • #3
    Saruman
    Registered Users, Registered Users 2 Posts: 11,389 ✭✭✭✭Saruman


    How much are we talking? Im not sure what it is but there is so much money you can make yourself without a need to declare so unless we are talking a sideline business here.. i think the odd job here and there worth a grand or two a year you do not have to declare.

    Then again.. i might be wrong.


  • #4
    Eoin
    Registered Users, Registered Users 2 Posts: 21,263 ✭✭✭✭Eoin


    Saruman wrote: »
    How much are we talking? Im not sure what it is but there is so much money you can make yourself without a need to declare so unless we are talking a sideline business here.. i think the odd job here and there worth a grand or two a year you do not have to declare.

    Then again.. i might be wrong.

    It's more than a grand or two a year at the moment with a potential for more later on, and I'd like to do everything above board. I wouldn't be particularly comfortable in chancing my arm.

    SarahMc - thanks for the info. I'm paying PRSI in my PAYE job, so hopefully I won't have to pay that for the nixer stuff.


  • #5
    Saruman
    Registered Users, Registered Users 2 Posts: 11,389 ✭✭✭✭Saruman


    OK in that case call revenue. They will advise you better than we can.


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