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Paying Tax on Nixers

  • 07-06-2011 2:43pm
    #1
    CyberDave
    Registered Users, Registered Users 2 Posts: 941 ✭✭✭


    I have recently been asked by an old employer to do some work. I'm not likely to make much out of it in a year. Maximum €600. She needs me to send her an Invoice for her records. Do I need to set up a VAT number or what steps do I need to take? or Do I not need to do anything under a certain earning amount?


Comments

  • #2
    Eoin
    Registered Users, Registered Users 2 Posts: 21,263 ✭✭✭✭Eoin


    Moved to "Entrepreneurial & Business Management". You won't need to register for VAT, but you may need to register as self employed (you can do this even if you've a PAYE job as well). Some of the more knowledgeable folk here will be able to correct me.


  • #3
    AndyJB
    Closed Accounts Posts: 177 ✭✭AndyJB


    CyberDave wrote: »
    I have recently been asked by an old employer to do some work. I'm not likely to make much out of it in a year. Maximum €600. She needs me to send her an Invoice for her records. Do I need to set up a VAT number or what steps do I need to take? or Do I not need to do anything under a certain earning amount?

    Hi,
    You don't mention what your current employment status is. If you're in receipt of social there maybe an issue, speak with your local welfare office if this is the case.

    You'll have no VAT issue as long as you remain below the VAT registration thresholds. Have a look at this VAT FAQs.

    Irrespective of your current level of income you are required to declare all income to the revenue. Tax on client payments are only payable on profits after you take off any expenses incurred in providing the service.

    As its self employed income, tax is not due to be paid on it until Oct/Nov 2012.

    You can register with the Revenue-Online service to do the returns, Revenue On-Line Registration. If you are currently employed do keep the P60s your employer gives you. They'll be needed when doing tax returns next year on the extra income.

    If the client has an in-house accountant pick their brains on the tax issues/returns, alternatively drop into your local tax office and they'd probably show you how to do the return. Otherwise a regular accountant would probably cost a couple of hundred and that would be end of any profit.

    Best of luck.


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