Paying tax on consulting work

Greven

Hi,

I'm thinking about starting to teach fitness classes in addition to the full time day job that I have. It will bring me around 200 euro extra income/month and I'm wondering how to best deal with the tax man on this.

The school that I'll be teaching in have suggested that I do the work as a consultant and invoice them for the hours that I do each month. Can you guys please explain to me how does that work with paying taxes later on?

Thanks!

premier10

If you are only talking about a couple of grand extra in total in the year, no need to register for vat. Just fill out a form 11 each year and enter this income under a trade. This will be added to your p60 income and tax calculated, you will owe tax and prsi on the extra income. Tax rate will depend on what rate you are currently on.
Hope this helps

anamcarame

I am replying here as I am in a similar situation. I am working full time and have just starting to earn some extra cash through providing a service outside of my regular job. I was advised by a friend to set up as a sole trader and declare the income. AS I want to be legit what are my options? Should I just declare the income at the end of the tax year as extra income and if so how do I do this? Surely setting up as a sole trader has costs involved. What re the advantages or disadvantages to either way? I reckon my income will be supplemented by about €200 per month all going well.