Sole trade returning to PAYE job, PAYE rebate

billius

Hi All,
In March of this year I was let go from my job.
I decided to setup as a sole trader doing Freelance work.
I've just started back in full time PAYE employment and the accounts manager has told me that I'll be getting a PAYE rebate in my 2nd paycheck.

Does this money have to go back to the Revenue? When I was freelancing I was saving money for TAX and VAT, so I have that covered.

Any adivce is most welcome!!

aidan.connolly

Hi, You will need to complete a Tax Form 11 at the end of this year. It will summarise your earnings for the year and include the PAYE earnings and sole trader profits if any.
Keep a note of all your sole trader costs etc, so you can offset them against your profits. As to your question, do you have to return the money to the revenue, this depends if you have calculated you tax liability on your sole trader profits and have saved it. If you have, then I think you can keep the refund you receive.

billius

Thanks a million Aidan. It's a great help!

I have calculated tax liability on my profits, so I guess I can keep the rebate!
WOOHOO!!