Part Time Work & Tax

BrianDug

Hi,

I am a student working part time during the summer, my employer told me to invoice him for the hours I do. I have never earned more than 120e a week (some weeks there is no work for me). He has asked me for PPS number but I am unsure as to if I am to pay tax myself or how it works. I would like to keep everything above board.

Any heads up would great, I will be seeing him soon so will speak to him in person about it then but would like to know now.

srsly78

If you invoice him he's not an employer, he's a customer of yours.

Leaving aside whether it's legal or not for you to invoice him: you are self-employed and must register thereas and file returns.

barneystinson

srsly78 wrote: »

If you invoice him he's not an employer, he's a customer of yours.

Leaving aside whether it's legal or not for you to invoice him: you are self-employed and must register thereas and file returns.

Invoices are irrelevant, issuing them doesn't make the OP self employed. Whether or not there is an employment or a self-employment will depend on the nature of the relationship. http://www.revenue.ie/en/tax/it/leaflets/code-of-practice-on-employment-status.pdf

It may well be the case that the employer is trying to wash his hands of his obligations (employers registration, operation of payroll, paying employers PRSI etc...).

BrianDug

Thanks for the responses,

The employer in question works for himself and has no other staff, I am only there for a short stint. Best to talk to him about I guess.

Thanks again

allthedoyles

You say you want to keep everything above board .........so tell your employer that you cannot invoice him because you don't have invoices .

Tell him that you need his employer registered number to apply for a tax credit certificate , so that you don't pay emergency tax .

In reality , he is taking you on as an employee , and employees have status of paye .

Mr. Incognito

allthedoyles wrote: »

You say you want to keep everything above board .........so tell your employer that you cannot invoice him because you don't have invoices .

Tell him that you need his employer registered number to apply for a tax credit certificate , so that you don't pay emergency tax .

In reality , he is taking you on as an employee , and employees have status of paye .

Yeah- you do that and he gives the job to the guy down the road.

Just buy a basic invoice book and write your hours and and give it to him

He is taking the risk of saying you are self employed. Let him. Its not your problem if Revenue audit him. Then you can fill out a form 11 next october for the 2012 year.

Easy enough tbh

foxboy

Mr. Incognito wrote: »

Yeah- you do that and he gives the job to the guy down the road.

Just buy a basic invoice book and write your hours and and give it to him

He is taking the risk of saying you are self employed. Let him. Its not your problem if Revenue audit him. Then you can fill out a form 11 next october for the 2012 year.

Easy enough tbh

sorry to hijack the thread
I was employed part time and thought my employer was doing everything right
paying me into bank account paying tax and prsi
but found out when i got my p45 there was no tax paid
so rang tax office to find out why and they told me I had to pay the tax
and they where going to take some tax credits to make up for the tax my employer didnt pay

can an employer not pay tax and leave you with the bill ??????

srsly78

No they can't. They would not be an employer in that case. What does the contract of employment say? I'm gonna take a wild guess: there was no contract, it was all very dodgy. You are legally supposed to get a payslip if an employee, showing a breakdown of all the tax etc.

This is the difference between being an employee and being self-employed.

dbran

Hi Foxboy

Your former employer may be correct in not deducting any tax if the amount that you were paid in each period was less then the amount of available tax credits for each period. I note that you said that you were working part time so this may indeed be the case if your gross pay is relatively small or you have an amount of unused tax credits coming forward.

Regards


Dbran

srsly78

He should still have received payslips showing deductions etc.

dbran

Hi Srsly

Perhaps.

He should have received payslips each week. OP dosen't say whether they did or did not. But in any case the P45 is not necessarily incorrect and it is not the case that just because there was no tax deducted that the employer has done anything wrong. I would think that if the employer was not operating PAYE correctly and they were "off the books" then they would not have issued a P45 at all.

Kind Regards


Dbran

foxboy

hi guys

I was not getting payslips so didn't find out until I got P45

Had to go to NERA to get payslips and when I got them they show my weekly tax credit as 40.68 and pay was from 366 to 500 surely he should of taken tax

dbran

Maybe..Without knowing the full ins and outs it is not possible to say. When did you start work there and for how long, did you work anywhere else in the year, what was the average weekly wage etc

Shane732

foxboy wrote: »

hi guys

I was not getting payslips so didn't find out until I got P45

Had to go to NERA to get payslips and when I got them they show my weekly tax credit as 40.68 and pay was from 366 to 500 surely he should of taken tax

It's the employers obligation to deduct tax correctly, I wouldn't worry about it. Just don't do something stupid and request a balancing statement!

Your employer may well have deducted tax correctly (i.e. €0) as dbran says it's impossible to know without knowing the full details.

Any PRSI paid on the P45?

allthedoyles

foxboy wrote: »

hi guys

I was not getting payslips so didn't find out until I got P45

Had to go to NERA to get payslips and when I got them they show my weekly tax credit as 40.68 and pay was from 366 to 500 surely he should of taken tax

Can you give us a breakdown of the weekly tax credit of €40.68 ?

BrianDug

Hey guys thanks for the responses I would like to update the thread from the original post now I have more information.

I spoke to the guy I was working for and he said he employed me on a contract basis and I was to make my own tax returns if I needed to.

I was working part time during the summer as I am student. I was working at most one day a week with not working some weeks at all. I would often work from home so at the end of each month I would send an invoice so to speak with the hours I had worked.

I am returning to college now and would like to make sure I am on top things with regards tax.

I have earned in the region of 800e over 12 weeks. I do not have work anywhere else and as mentioned I am returning to college soon.

I would be grateful for any advice regards paying tax if applicable?

Thanks

BD

dbran

Hi

Complete a form 12 after the end of the year and submit it to your local tax office. Download the form from revenue.ie. Wait for the notice of assessment to issue and pay the tax assessed. If this is your only source of income I would expect little or no tax to be due.

Hope this helps

dbran

BrianDug

Thanks dbran,

One last question, next year I will be still a student going through college and the grant system. As I wasnt an employee of the company will the fact that I had to make my own tax return impact my eligibility for the grant(i'm sure this is not your area). Would me working this summer classify myself as been self employed?

BD

srsly78

The grant is means tested I believe. e800 is not gonna make much difference unless you were already close to whatever limit they use.

So employment status does not matter - means does.