Second job and tax

Deliverance XXV

Hey guys.

Apologies mods, if this is in the wrong forum or if this constitutes legal advice and isn't permitted etc.

My question relates to tax and business.

The hours for my current job are fairly flexible and are mostly 6-3's and 7-4's so nearly every evening I have free. So I was thinking of setting up something small to bring in an extra few bob. It wont be such a steady job but could be an extra €50-100 per week.

So my question do I need to register a business name/company and calculate/pay extra tax? Or should I say nothing?

I would much rather everything to be legit of course, but I have no experience what-so-ever in this sector.

Any help/suggestions is much appreciated.

mcaul

Simply set up as a trading name - cost is about 20 quid.

At the end of the year, you declare your net income (after all expenses in relation to the sideline) from the side line and complete a year end tax declaration and if there's any tax due, you'll just pay it. - the end of year return is also handy for adding in your medical, dentistry, refuse charges, rent tax allowance (if you are paying rent) etc. and you may find that you'll get tax back!!

As the amounts are small, you won't need to register for vat / paye.

Deliverance XXV

mcaul wrote: »

Simply set up as a trading name - cost is about 20 quid.

At the end of the year, you declare your net income (after all expenses in relation to the sideline) from the side line and complete a year end tax declaration and if there's any tax due, you'll just pay it. - the end of year return is also handy for adding in your medical, dentistry, refuse charges, rent tax allowance (if you are paying rent) etc. and you may find that you'll get tax back!!

As the amounts are small, you won't need to register for vat / paye.

Cheers for the info

So when I'm sorting taxes out;

(i) I just keep records for the year and deduce amounts of tax at end of year?

(ii) Does this include my current job, do I add the two salaries together when deducing or are they both just taxed at normal rate? If I do I fear that this will drive me into the higher tax bracket?

Also, when you say trade name do you mean to register as a company or a business name?

Thanks for your time

King Nothing

King Nothing wrote: »

(i) I just keep records for the year and deduce amounts of tax at end of year?
Keep records of all your cash inflows and outflows. If this is a serious, long-term venture, I would recommend getting an accoutant/tax advisor to then work out your tax position for you at the year end. If the records you keep are well laid out and accurate, this should not be an excessively expensive service.


(ii) Does this include my current job, do I add the two salaries together when deducing or are they both just taxed at normal rate? If I do I fear that this will drive me into the higher tax bracket? PAYE Income + Self-employed Income = Total Income for the year. If this drives you into the higher tax bracket, then thats life! You will have paid tax at source on the PAYE Income already, so don't worry, you won't get double taxed. But you will need to record the PAYE income on your year-end tax return all the same.

Also, when you say trade name do you mean to register as a company or a business name? I'm guessing just a business name. A Ltd Co can be tough in terms of administration etc, I would recommend sole trader status rather than incorporating

Hope this helps a bit!

Deliverance XXV

Cheers for that

TBH it seems far too much to justify what I'd be getting.
Is there any alternatives?