Second Income

jamjamjim

Can someone please help me with a little advise on having a second income as a part time musician. I wish to register and go about this legally but i don't know the procedure.

If i regsiter as self employed how do i submit my tax returns on top of my existing job?

I'm not good with accounts so would appreciate it if someone could keep this very simple for me.

Also can anyone tell me on average how much an accountant would charge for this service to sort this out for me

nompere

Accountants charge according to the amount of time they spend looking after a client. Expect to pay a minimum of €80 per hour.

Depending on the level of income you either include it in a Form 12, which is pretty easy, or a Form 11, which looks quite daunting. In either case you have to put your PAYE income and any other income and credit claims onto the form. Net earnings of €3000 or less just go onto a Form 12.

You are already registered for income tax, because you are on PAYE, so unless you are going to be earning enough to have to charge VAT (basically over €37,500 in gross earnings per annum) there's no further registration required.

ronanmc1987

You have to register as a sole trader if you want to go legit, the form is a TR1 and is pretty easy to fill out, if you have any friends or contacts in that field to check it over before you send it off it would be handy for peace of mind, you can print the form off at www.revenue.ie ,type TR1 into their internal search engine.Getting an accountant to do this is a waste of money and wil show any accountant you talk to that you are no mug and may make them think twice about rippping you off because a lot of them will if they get half a chance!...not all i must stress.

For a part time musician you would not have that much going on and i would not pay any more than €1000 tops €1500 but very hard to gauge without having a look. Basically when looking for an accountant shop around and ask for quotes and bargain with them...it is possible to get it done for less than i quoted, i just dont want to get your hopes up!..i find rural practices cheaper,most offer 1 free consultancy but make sure to check beforehand with a phonecall.

Your tax is worked out at the end of the year like the previous poster said but you must be aware that depending on your level of income from your full time job your tax credits and cut off point may be used up therefore all your income from your musician business may be taxed and indeed depending on how close your current salary is to the higher rate tax band it may be taxed at the higher rate.

Finally i must say its quite admirable that you are willing to go legit as a musician, not many do in that field do from my experience but i may be wrong!!...i hope this was of some help and i wish you all the best!

MBateson

You should be able to get an accountant to do it for 300-400 including VAT max. if all you have is PAYE income and if you summarise your income and expenses from your musician trade.

All they have to do is put this info on the relevant form and do the calculations which will probably be done automatically if they are using ROS software.