Self-Employed & PRSI

Fooddestroyer

In August past, a friend began private consultation work for a local charity in Kildare. Since then the position has remained at approximately 8 hours per week every week.

The work is due to continue well into the new year with a view to becoming permanent. My friend is not yet registered self employed, or paying any tax yet, but feels that she would like to register and back date everything from August past, just to be sure.

Here are some questions:

1. What is the easiest way to register for PRSI
2. Can she back date?
3. What is she likely to pay?

Thanks team, once again!

dbran

Hi

From what you are saying it would appear that the charity organisation are not treating your friend as an employee and deducting PAYE/Prsi but are treating your friend as self employed.

She should register as a self employed sole trader using a form tr1 which can be obtained from the revenue website at www.revenue.ie.

When you are self employed, you are not subject to the PAYE system. You are required to pay and file all of your tax and prsi due in October every year.

As she commenced to trade in August 2009, it means her accounting year will run to September 2010. She will be filing her first income tax return in October 2010. She has no obligation to file anything for this month October 2009.

She can back date to last August because she is not due to file any income tax return until October 2010.

However it is impossible to know how much you will pay unless you prepare accounts of your business.


Kind Regards


dbran

Fooddestroyer

very helpful, thanks!