Occasional Work - How to give an invoice?

daigo75

Hi,
I've been asked to do a work for a small company (just once, it won't be repeated in the future), and they told me they will need an invoice. Problem is, I don't know how to give a proper invoice and what should I calculate on it (VAT, taxes, other things...). Tax office was not very helpful, they kept asking me if I would be working as a contractor (I'm not, since I'm not registered as one and I won't register for such a small job), or as an employee (I'm not).

Is it possible to just write a piece of paper stating the amount received? If yes, how much should I add to the amount to include all the involved taxes/contributions?
Thank you for your answers/opinions.

seamus

You pretty much just write on it stating the date, the service provided, the client's name and the total amount.

If they want a detail invoice, just break it down into the various expenses and costs.

You don't add, state or deduct any tax. The amount is a flat amount.

You only add or state VAT when you are VAT registered. Unless you are earning more than €25k/year (iirc) in this capacity, then you do not register for VAT.

jmcwobbles

Found this link on one of the stickies, might help you out... http://www.freelanceuk.com/resources/free_invoice_template.shtml

daigo75

seamus wrote: »

You pretty much just write on it stating the date, the service provided, the client's name and the total amount.

If they want a detail invoice, just break it down into the various expenses and costs.

You don't add, state or deduct any tax. The amount is a flat amount.

You only add or state VAT when you are VAT registered. Unless you are earning more than €25k/year (iirc) in this capacity, then you do not register for VAT.

Thank you for your reply. Two things are still unclear:
- How do I have to declare this extra income to the revenue office?
- If I write a flat amount (e.g. 100 Euro), and I will pay taxes on that income, my net income will be less. That's why I was expecting to add something to the amount. Am I wrong?

seamus

daigo75 wrote: »

Thank you for your reply. Two things are still unclear:
- How do I have to declare this extra income to the revenue office?

Yep. Check www.revenue.ie and there should be info there on how to do it.

- If I write a flat amount (e.g. 100 Euro), and I will pay taxes on that income, my net income will be less. That's why I was expecting to add something to the amount. Am I wrong?

Yep. You don't charge the client for your income tax. What you pay as income tax is your own business.

daigo75

seamus wrote: »

Yep. Check www.revenue.ie and there should be info there on how to do it.
Yep. You don't charge the client for your income tax. What you pay as income tax is your own business.

Ok, almost understood. I still don't understand how to declare this extra income and when (Revenue website is not clear). I called the office again, but they still give me only two options: employee or self-employed, which both don't apply to this case. It seems that occasional work is "not existing"

This whole thing is getting complicated...

seamus

Well, you can be both employee and self-employed.

You would have to register first for self-employment I think and then at the end of the year you present your annual tax return for yourself and send off a cheque to revenue.

My advice if the amount is only a few hundred euro and you're not likely to ever be doing work like this again (for this client or any other), is to not bother. You'll never be asked about it.

If you're likely to be doing this on a semi-regular basis and/or will be getting decent amounts of money out of it (> 1k) into your own pocket then I would register.

daigo75

seamus wrote: »

Well, you can be both employee and self-employed.

You would have to register first for self-employment I think and then at the end of the year you present your annual tax return for yourself and send off a cheque to revenue.

Yes, I understand, but the amount is way too low to go through all the mess, especially because it's only once. Register as self employed, prepare the tax return, calculate how much should I pay (no idea how to do this), etc etc. It would take me more time to sort all these things out than to do the work. :rolleyes:

ballooba

daigo75 wrote: »

Yes, I understand, but the amount is way too low to go through all the mess, especially because it's only once. Register as self employed, prepare the tax return, calculate how much should I pay, etc etc. It would take me more time to sort all these things out than to do the work. :rolleyes:

Personally I always declare any income (Hi Mr Revenue Man if you're reading!;)) but I don't think Revenue will be coming after you for a few bob if it's a once off. If it becomes more regular then it's a different story.

Dar

Ok, almost understood. I still don't understand how to declare this extra income and when (Revenue website is not clear). I called the office again, but they still give me only two options: employee or self-employed, which both don't apply to this case. It seems that occasional work is "not existing"

Are you a PAYE worker? If so, afaik you can ring up the revenue and declare the extra income and they will recalculate your tax credits etc. for the rest of the year so that the tax liable will be taken from your wages as standard.

daigo75

Ok. Thank you all for your answers.

Quest21

Hi there,

Many years since this thread was closed however just to follow-up, one time occasional work would require an invoice or else just give back a receipt?

Thanks,

The_Conductor

Quest21 wrote: »

Hi there,

Many years since this thread was closed however just to follow-up, one time occasional work would require an invoice or else just give back a receipt?

Thanks,

I think the original poster was specifically requested to give an invoice to the company in question. In general- you'd give a receipt, nothing more, nothing less. The OP's biggest issue was the fact that the amount they were invoicing for- was far higher than they were netting from the job- so potentially they would be paying tax on the gross income from the job- rather than the net income they ended up with.

Its a conundrum that happens in some sectors (such as letting residential accommodation) where some of the taxes are on the gross income- and some on the net- so you can potentially owe tax, even in a negative net income situation..........

Anyhow- your best bet is to talk to the company/business concerned- and see what their requirements are- and how you can best meet their requirements. Most businesses simply need a receipt to account for purchasing a good or service.