Sole trader to give grinds?

bdoo

Hi all,

Don't usually find myself on this forum but there you go!

I'm a teacher and have been thinking of giving grinds but am acutely aware of the revenue and their attitude to this being undeclared. I have no desire to break the law or get in trouble with the taxman.

Would it be the most tax efficient way to do things as a self employed person -invoicing for the grind and giving a receipt?

Can you deduct travelling expenses etc and then pay tax on your actual profit rather on the full whack if you just declare it as income. Or is it even possible to be employed and self employed at the same time?

Thanks in advance...

bdoo

Ashlinggnilsia

Short answer no you can't be self employed and employed at the same time. Well revenue wise. If you register for Self employment your income tax band changes, not entirely sure what it is but its different. I am currently Self employed and in employment and I have notified the employer that i am self employed and they should be charging me a different tax, which they have not done so, Will be heading to an accountant in the next few months and am very aware that I will end up paying the extra taxes my employment failed to do take into account.

As far as i am aware if you want to give grinds and want to be legal about it you have to register as self employed but remember that would effect your current income from teaching. Best advice i can give you. Go to an accountant I am not 100% certain and if your anything like me anything revenue wise i DO NOT want to be getting wrong.

nompere

Ashlinggnilsia wrote: »

Short answer no you can't be self employed and employed at the same time. Well revenue wise. If you register for Self employment your income tax band changes, not entirely sure what it is but its different. I am currently Self employed and in employment and I have notified the employer that i am self employed and they should be charging me a different tax, which they have not done so, Will be heading to an accountant in the next few months and am very aware that I will end up paying the extra taxes my employment failed to do take into account.

As far as i am aware if you want to give grinds and want to be legal about it you have to register as self employed but remember that would effect your current income from teaching. Best advice i can give you. Go to an accountant I am not 100% certain and if your anything like me anything revenue wise i DO NOT want to be getting wrong.

Just about every part of this reply is wrong.

Of course you can be self-employed and an employee at the same time. The tax credits applied to your employment won't change in the slightest - unless Revenue opt to collect the tax on your other earnings through the PAYE system That's as painless a way of paying the tax as is available. The tax bands don't change. Your employer just carries on applying the tax credit certificate Revenue issue.

You will be liable to tax and USC on your self-employed earnings. Those earnings are calculated by adding up the fees you charge and reducing that figure by the expenses you incur in earning them.

Unless those earnings are over €3,000 (I think - no books at home!) you won't have to fill in a form 11, you can just include the profits on a form 12.

By all means talk to a professional at the outset, but really it's all pretty easy.

barneystinson

Ashlinggnilsia wrote: »

Short answer no you can't be self employed and employed at the same time. Well revenue wise. If you register for Self employment your income tax band changes, not entirely sure what it is but its different. I am currently Self employed and in employment and I have notified the employer that i am self employed and they should be charging me a different tax, which they have not done so, Will be heading to an accountant in the next few months and am very aware that I will end up paying the extra taxes my employment failed to do take into account.

As far as i am aware if you want to give grinds and want to be legal about it you have to register as self employed but remember that would effect your current income from teaching. Best advice i can give you. Go to an accountant I am not 100% certain and if your anything like me anything revenue wise i DO NOT want to be getting wrong.

Sorry but that's almost completely tripe.

Of course you can be self employed and employed at the same time, and as long as it doesn't break a clause in your contract of employment, it is of absolutely no consequence to your employer if you've got a sole trade on the side. Data protection would prohibit Revenue from even telling your employer you're also self employed. If you contact Revenue and ask them to reduce your tax credits and SRCOP to take account of your self employed income, they will issue a new tax credit cert to the employer, but they won't tell them why.

Yes the OP has to register as self employed if the gross income from giving grinds will exceed 3,174, and file a tax return in any case. It is at that point that a person who is both employed and self-employed pays the extra tax due on their self employment income.

Ashlinggnilsia

Sorry didn't explain myself properly.

Itsdacraic

nompere wrote: »

Just about every part of this reply is wrong.

Of course you can be self-employed and an employee at the same time. The tax credits applied to your employment won't change in the slightest - unless Revenue opt to collect the tax on your other earnings through the PAYE system That's as painless a way of paying the tax as is available. The tax bands don't change. Your employer just carries on applying the tax credit certificate Revenue issue.

You will be liable to tax and USC on your self-employed earnings. Those earnings are calculated by adding up the fees you charge and reducing that figure by the expenses you incur in earning them.

Unless those earnings are over €3,000 (I think - no books at home!) you won't have to fill in a form 11, you can just include the profits on a form 12.

By all means talk to a professional at the outset, but really it's all pretty easy.

Hi, is it alright to piggy back on this threasd as most of the information I need is already here.

Similar to above, I have setup a little business on the side, completely seperate to PAYE job. It's kinda happened by accident, in that I did a job for a friend, and through word of mouth of gotten a few other clients, it's nothing major and wouldn't expect to earn more than the €3,000 per year limit outlined above. But at the same time I'd like to be legit so I could advertise my services openly.

What do I need to do as regards declaring the income to Revenue at this stage? Do I need to register the business name I am operating under, or if I do that does it put me into a whole different sphere in the eyes of Revenue.

Any help appreciated as I've kinda stumbled into this situation so not sure what to do.

Thanks