Additional income and tax implications

rich.d.berry

My wife has been offered an opportunity to earn some "pin money" by doing cake decoration for a caterer. She will not be on staff and is being offered cash for the cakes she decorates.

I have had a look on the Revenue website to see what the tax implications are. It appears that for us to accept this sort of income I will have to change from being a PAYE tax payer and register as self-employed in order to do everything above board.

Is this correct? The potential earnings are not huge and may come to somewhere around €100 - €150 per week, but there are costs as well. It's not that we need the money, but my wife wants to do it because she loves doing and it gives her an outlet for her creativity. If I had my way we'd not bother because of the potential hassle, but I don't want to deny her something she'll enjoy doing either.

So the advice I require is whether €5000 casual income would require re-registration as self-employed or is there some way to declare it and remain on PAYE?

barneystinson

If her gross income from self employment is less than 50k and her net income is less than 3,174 then she will not need to register as a chargeable person, and the extra income can be returned on a Form 12.