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How to charge for once-off payment

  • 06-11-2012 8:15pm
    #1
    gnolan
    Registered Users, Registered Users 2 Posts: 1,501 ✭✭✭


    I'm currently working full-time on the lower tax rate. In the coming weeks i'll be doing some freelance work for a company. The work will be at most 10 hours at around €35/hour. I'm wondering how i go about charging for this? I'm not set up as my own company and i'm thinking that this will probably be a once-off.

    My first action is to estimate the work required and send them a quote. This will include items, hours, rates and descriptions. Should my hourly rate be inclusive of the 23% vat rate?

    I'm pretty clueless!


Comments

  • #2
    NewApproach
    Registered Users, Registered Users 2 Posts: 2,191 ✭✭✭NewApproach


    gnolan wrote: »
    I'm currently working full-time on the lower tax rate. In the coming weeks i'll be doing some freelance work for a company. The work will be at most 10 hours at around €35/hour. I'm wondering how i go about charging for this? I'm not set up as my own company and i'm thinking that this will probably be a once-off.

    My first action is to estimate the work required and send them a quote. This will include items, hours, rates and descriptions. Should my hourly rate be inclusive of the 23% vat rate?

    I'm pretty clueless!

    Do an invoice, you can get a sample from the internet. Unless you are registered for VAT which I don't suppose you are, you do not need to charge VAT.


  • #3
    gnolan
    Registered Users, Registered Users 2 Posts: 1,501 ✭✭✭gnolan


    NewApproach wrote: »
    Do an invoice, you can get a sample from the internet. Unless you are registered for VAT which I don't suppose you are, you do not need to charge VAT.

    Should i not be paying some kind of tax on that income though? I'm sure that the company i'm doing the work for won't be happy to pay me under the table.


  • #4
    NewApproach
    Registered Users, Registered Users 2 Posts: 2,191 ✭✭✭NewApproach


    gnolan wrote: »
    Should i not be paying some kind of tax on that income though? I'm sure that the company i'm doing the work for won't be happy to pay me under the table.

    You should keep a record of the income and any associated expenses and do a Form 12 next year. They company can use the invoice you provide them as an expense. Once you provide an invoice to them and correctly apply VAT (that is, charge VAT if you are chargeable person and don't if you are not), it is not really their issue if you do not end up declaring your income to Revenue.


  • #5
    gnolan
    Registered Users, Registered Users 2 Posts: 1,501 ✭✭✭gnolan


    NewApproach wrote: »
    You should keep a record of the income and any associated expenses and do a Form 12 next year. They company can use the invoice you provide them as an expense. Once you provide an invoice to them and correctly apply VAT (that is, charge VAT if you are chargeable person and don't if you are not), it is not really their issue if you do not end up declaring your income to Revenue.

    Regarding the VAT issue, what factors make me a "chargeable person"? I am not currently registered for VAT.


  • #6
    NewApproach
    Registered Users, Registered Users 2 Posts: 2,191 ✭✭✭NewApproach


    gnolan wrote: »
    Regarding the VAT issue, what factors make me a "chargeable person"? I am not currently registered for VAT.

    You must register once your turnover from providing services exceeds €37,500 in a year (€75k for sales of goods). You can elect to register if you are under the threshold, but you have no reason to.


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