PAYE and self employed at the same time

bladespin

Hi all, first post i this section but I have a dilemma:

In January I was made redundant, after searching for 5 weeks I found a good job (different field) I really enjoy, salary isn't as good as my last but I'm not bothered about that too much (the way things are).
I'm paid monthly and paye etc are deducted at source, nice and easy.

My old company has contacted me about some part time work, I'm inclined to take any opportunity that arises to boost my income but they want me to invoice them for my services, how can I do this? Pay paye all year then self assess at the end?
The total invoices would be less than €2000 if that helps. any advice is greatly appreciated.

apols if this is in the wrong place.

00112984

You could use an "umbrella" company who would take you on as a director of a limited company they've already set up and you can invoice through them. The umbrella company can also do taxes etc. for you. That way, everything is legit and each bit (PAYE and SE) are handled separately.

A few companies who offer this service are Prima Management and CXC in Cork but I bet you'll find a few others.

aidan.connolly

Hi,
Keep things simple, if you are only thinking about 2000.00 per year.
Get an invoice book and issue invoices to your customer.
Keep receipts for any expenses related to the business as you can deduct these from your profits. ( must be business expenses ! )
I would not set up a company at this stage.
You don't need to register for vat.
Check with the tax office about reducing your tax credits on your day job to take account of you additional earnings, so that when it comes to the end of the tax year, you should not have to pay over very much extra.
*I am open to correction on the next statement, but I understood that you can declare on your PAYE return the additional earnings, and you may not have to fill in a Form 11 *. ( I am sure someone on the forum can confirm or correct this statement )
Good luck with it

Aidan

swanvill

Hi,
You can indeed reduce your tax credits by the additional income but I would keep all my expenses & sales invoices in a folder and calculate my profit for the year.

You can fill in a form 11 or a form 11e (its a short form 11), the forms are not to difficult and by completing the form you may discover you might be entitled to additional relief.


The Revenue can help people with completing the form or if the Op likes he can pm for advise on the form.

Regards,
Swanvill

PS avoid umbrella companies as they are relatively expensive

Sonnenblumen

00112984 wrote: »

You could use an "umbrella" company who would take you on as a director of a limited company they've already set up and you can invoice through them. The umbrella company can also do taxes etc. for you. That way, everything is legit and each bit (PAYE and SE) are handled separately.

A few companies who offer this service are Prima Management and CXC in Cork but I bet you'll find a few others.

Crazy overkill suggestion. OP retain all invoices, relevant expenses and proof of payments from additional work. Simply complete all details on annual PAYE return at end of year. Revenue will determine what if any tax liabilitie sapply.

Setting up a co to manage an additional €2k is laughable.

bladespin

Thanks for the replies guys, your advice is very much appreciated