PAYE and Self employment tax questions

Amel

Hi,


I am for the first time declaring tax for both PAYE and Self Employed income, this is for the year 2008 and I want to do it right so I would really appreciate I someone could have a quick look to see if I have understood things right.


My PAYE income was 13371.02, I payed no tax on this but 367.84 in PRSI.


The total PRSI(employer+employee) was 1786.18 as I understand this does not matter at all but please correct me if I'm wrong.


My tax credit is 3660


Trough my self employment I earned 7752 of which 840 was expenses, this leaves me with 6912.


From what I know I should file this using form 11.


Have I understood it correct that when after filing my form 11, the PAYE and the self employed income will be treated as one and share the 3660 in tax credit?


My calculations looks as follows:


PAYE income: 13371.02 tax 20% = 2674.204


As I understand it if the above would have been my only income then I should not pay any PRSI(although I have paid 367.84) as my weekly income would have been less then 352.


Self employed income: 7752 – Expenses 840 = 6912 tax 20% = 1382.4
PRSI(class S) 3% = 207.36


Is it now a matter of adding the two taxes together?


So: 2674.204 + 1382.4 -3660 = 396.6


In this case what happens with my PRSI, should I add PRSI for my PAYE income now as my PAYE plus self employed income together gives me more then 352/week, and what happens with the PRSI that I have already paid?


I am aware that when filing the form 11, the tax office will do these calculations for me, however I want to know whats happening and what to expect.


I would be very grateful for any thoughts on this, thanks in advance!

TaxingTimes

You add all your income before calculating the tax but will ge the same answer.
Your PRSI from employment is separate from your Class S contributions, and both remain due.

Amel

Thank you for the answer, that answered my question.

ruthkell

Hi, just completing Form 11. Have 2 incomes - selfemployed and PAYE totalling about 33,000euro per year. Am I right in saying I need to put my selfemployed figures in the "INCOME FROM TRADES, PROFESSIONS OR VOCATIONS" section and PAYE figures in the "INCOME FROM IRISH EMPLOYMENTS, OFFICES, PENSIONS DIRECTORSHIPS ETC"?? Thanks, first time to complete form and revenue guide is confusing me as well!!!

TaxingTimes

Yes, your self-employed income goes in the "trade" section.

If you are filing your 2008 tax return now, you will have a 5% surcharge on your tax liability, if filed less than 2 months late - this will increase to 10% after that.

Best get your return filed before end of December!!

ruthkell

Ta, yes i'm running late with 2008 return. So, does PAYE income go in Income from Irish employment section?
Also, my income from selfemployed, do I put this under the Wages or drawings section of Income from trades part?

TaxingTimes

Your wages and tax deducted go in the employment section.

With regard to your income from self-employment, you need to prepare a set of accounts and fill out the relevant boxes. You will be taxed on the profit.

Jurga78

Hi, similar question :
I am a PAYE employee and I've also registered a small business last year.
I want to get Balancing statement of my taxes of 2013. But last year I've only had expenses from self employment (around 14K). Can I substract these expenses from the income earned at my employment and get a tax refund?

TaxingTimes

You need to complete that trading section, produce a set of accounts, and then claim to have any loss set against your other income

dbran

Jurga78 wrote: »

Hi, similar question :
I am a PAYE employee and I've also registered a small business last year.
I want to get Balancing statement of my taxes of 2013. But last year I've only had expenses from self employment (around 14K). Can I substract these expenses from the income earned at my employment and get a tax refund?

If these are pretrading expenses ie you have not made any sales in that period to date, you may not set them off against your PAYE income but only against trading profits in the future.

dbran

Jurga78

ah that's a shame, thank's

peterpan123

Hi there,

Wondering if anyone could advise if there is any way to utilise tax credits for a married couple. I am a PAYE worker and my wife is Self Employed.

Is there any benefit to declaring as Single or Married to be able to utilise each others tax credits?

Any help would be great.

Thanks,