'self-employed' to paye, documentation needed?

jeanyMac

Hi, anyone know anything about this. I really don't want my potential employers to know I've been on jobseekers for last while as they'll take advantage as a lot of companies are.

I have an interview next friday eveing. so on my CV i've put self employed, when really the most I done is one or two IT nixers but I have a little bit of work to show for them.

what will i need to produce to my potential employers in terms of documentation? I think i have my p45 from my last full PAYE position but haven't done anything on the books since then, havent done much full stop really. Will they be able to figure that I wasn't properly self employed, just doing odd jobs.

What do they need to know about my previous salary in my PAYE postion last time? Its on the p45 right? so I couldn't say I was earning X when I was really earnign Y could I?

thanks

MazG

You won't need to give 'potential' employers any documentation such as a P45 at interview stage. If you have been unemployed since before the start of 2010, your P45 from previous employment will not be relevant to a new employer in any case.

If they offer you a job, you just need to give them your PPS number so that they can pay you. You then ring the tax office with your new employer's registered number and ask them to issue a certificate of tax credits. You may be on emergency tax for a week or so while this comes through, but generally they are pretty speedy with processing this. Once your tax credits certificate has been issued, your new employer will know how to correctly tax your wages.

Best of luck with the interview

jeanyMac

thanks man. Yeah I have been unemployed PAYE style since before start of 2010. but on my cv i put self employeed so they won't think I was doing nothing and in fact I did two jobs for clients totally about 8K some in 2009 some in 2010 but was on jobseekers too (earned about 3-4k in nixers while on JS).

when i give new employers pps num, and eventually get my tax credits cert and then give it to my new employeer, will they be able to see that i haven't payed any self employed tax? Will they know that I either was doing nixers or lied about the extent of my self employment??? or is PAYE AND self emplyoed system completely separate? What is on the tax credit form? Does it mention tax payed, or is it just credits.

total earned was about 3k while on jobseekers. these nixers i get are really adhoc so I didn't want to quit jobseekers cuase i didn't have a proper job. if i declared as self emplyed and then done my 3k worth of work (about 4 weeks) and then no more work I wouldn't have been eligle for dole again, I don't think. I turned down some other nixers to minimise my 'abuse' of the system and all I want now is to get a full time job (I have been trying believe me) and start paying proper tax again but I'm afraid my small discrepancies (8k no taxed payed - 3k of it while on JS) are goign to bite me in the ass.

one final question, what is the tax net for self employed people? You know during the time of the budget, the minister was saying that about 50% of peopel pay no tax at all cus the only earn small money like 15K a year or so. They are outside the tax system, is there such a thing for self emplyed. I know self emplyed ppl dont get tax credits but is that where this comes from. If a self emplyed person earned only 10k a year do they have to pay tax on that? Cus I only earned about 8k in the course of about 15-18months.

MazG

Your tax credit certificate for a new employer will only show your tax credits for the year. No information about income appears on it, nor is there any information about tax paid in previous years

As for your income from last year, you are probably correct in that tax would not be owing on it, but there may be PRSI and/or income levy due. You would really need to talk to the tax office about this, or find out on the revenue website: http://www.revenue.ie/en/tax/it/leaflets/it10.html#section4

The level of income after which a self-employed person will pay tax is actually lower than the level at which a PAYE employee will pay tax. This is because PAYE employees are granted an additional tax credit. Still though, it sounds to me like your income for 2009 was low enough that tax will not be due. Nonetheless, it is worth checking out the revenue website though, and the sooner the better.

Hope the interview went well

jeanyMac

thanks man. Interview is on friday coming. I've been 'studying' all week for it. so it seems I'm alright as far as the potential new job is concerned, its good to know.

are self emplyed granted any tax credits - i don't see nothing about it. Kind of rough on them if they are not.

Yeah I'll try set things right with the revenue as soon as possible, but it will have to be after I get a job, I barely have a pot to piss in at the moment, never mind the money to back pay the tax office a couple of hundred PRSI quid.

MazG

Yes, self employed people are granted tax credits. People who are employees and have tax deducted from their wages each week/month get an additional tax credit though. http://www.revenue.ie/en/tax/it/leaflets/it1.html#section1

Best of the very best of luck with the interview