Freelance work - tax

notspav

I'm in full time work, but owing to the current climate I had to take a 20% paycut about 18 months ago.

To help supplement my income, I do a small amount of a freelance work in my own time - my employer is aware of this.

I didn't declare this to the taxman from the outset, as we were talking about tiny sums - €50 here, €40 there. However, over the course of the last year it's all added up to about €5k, and I still haven't declared it. Partly because I have never got around to it, partly because it just wouldn't be worth my while long term doing the work if I had to lose 40% of it, and partly because I already pay income tax on my main earnings. No excuse from a legal standpoint, I know.

However, I don't want to get stung further down the line, so was wondering what my options are? Anyone know if I'd be in trouble if I declared these earnings retrospectively? The first invoice dates back to Feb 09. Or, would I bet better off cutting my losses, keeping schtum, then slowing stopping the freelance work altogether?

litup

Might get better responses if you post this over in the taxation forum.

In the meantime, you are not not late in making your returns yet. Your income tax return for the year ended 31 December 2009 is due for filing and payment by 31 October 2010.

You are best of declaring it to be honest. Make sure you are claiming all associated expenses and the liability mightn't be so bad. Interest and penalties really stack up if you are caught later down the line.

m5ex9oqjawdg2i

The main problem is if a company that you done freelance work for gets audited and they find your invoices.

What are the chances of this happening though? I am not sure.

notspav

Thanks for the advice all - posted this over on the tax forum too for advice.