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vat and tax when employed and student

  • 09-11-2010 11:06pm
    #1
    businessdit
    Registered Users, Registered Users 2 Posts: 173 ✭✭


    Hi all,

    I am a stident who is employed on a part time basis.
    I havde also recently set up my own business as a sole trader.
    I am getting work, and finding it very rewarding even though I am working very hard right now between my college work, my part time employmnet and my self employment projects.

    In the line of buisness I am in because it is a business to business service I need to charge VAT to my customers as i will not be taken seriously in this industry if I have not got a VAT number. I know for certain that I will struggle to make sales without a Vat number.

    I am however warey in applying for the Vat Number as I am unsure how this will effect my tax situation. I currently am taxed very little by my employer, only nominal prsi paymnets etc. Will my employer be notified of the fact that I now have a vat number and am taxed as self employed?
    If I apply for a Vat number, even though I make tax contribution, does this mean that in years to come and I applied for social welfare would this be rejected as I was once technically self employed and with a VAT number?

    Would appreciate any input and opinions you have.

    Thanks.


Comments

  • #2
    businessdit
    Registered Users, Registered Users 2 Posts: 173 ✭✭businessdit


    Hi guys

    I know its a pretty boring subject but would really appreciate some input or thoughts.

    Thanks :)


  • #3
    dbran
    Registered Users, Registered Users 2 Posts: 2,094 ✭✭✭dbran


    Hi

    Applying for a VAT number will not affect your income tax position as you will be charging the additional VAT to the consumer and then paying that amount over to the revenue. In other words you are just collecting the VAT on behalf of the revenue. It is not income!!!

    You will of course have to register as self employed and will have to return all your income and pay the relevant income tax on it. Your employer will not be notified of your tax position or that you are now also self employed.

    The social welfare will normally means test the benefit that you receive so that any income you earn goes towards reducing this benefit you are entitled to.

    Hope this helps


    dbran


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