How to pay tax on contract hours on top of PAYE salary

whiteboard

Hi all,

looking for a bit of direction on this one, hope my query makes sense.

As the title says, I am a PAYE worker but have been given the opportunity to do some additional work (not for main employer) which will be paid on invoice. Can someone advise on how I go about paying the Tax etc. due on the invoiced hours?

Cheers
Whitey

gerrycollins

You need to set yourself as a sole trader or private ltd company. Register for vat.

Invoice for your services.

File a tax return every year stating earnings minus costs to business and pay tax on the balance. Your invoices should also include a vat amount which needs to be paid separately minus your vat costs.

However if your annual turnover is going to be less than €35k you do not need to do any of he above however you cannot register for vat.

Check with you local enterprise board for further information

GerardKeating

gerrycollins wrote: »

However if your annual turnover is going to be less than €35k you do not need to do any of he above however you cannot register for vat.

You can register for VAT if your turnover is less than €35,000, but it's optional.

vikingdub

I think you will need to register with Revenue as self employed and make an annual tax return, you do this a year in arrears, for example, self employed tax return for 2010 is due in October 2011.