What needs to be done?

danielgalway

Brother has been unemployed for a few years receiving Job seekers Benefit.

There is the possibility he may get about 15 hrs a week, (over 2 days) earning approximately €300

However, in order to get the job, he will have to provide a tax clearance cert as the company will be providing a service to state agencies.

He will not be employed by the company so will have to do his own income tax, PRSI and USC.

• What does he need to do to get a tax clearance cert?
• Does he have to register for Income Tax?
• How will it affect the JSB?
• How does he work out what tax, etc he will need to pay each year?

Any advice for him would be appreciated.

Frank McGivney

He needs to
(1) inform the welfare office who will adjust his payment for the weeks he get work
(2) Register as self employed with the Revenue commissioners
(3) Once registered apply for tax clearance cert, this can be done online
(4) the amount of tax he will pay depends on how much he earns, he needs to hold on to all his expense receipts and bank statements and these can be used to calculate his annual profit and then his tax. Too many factors are involved to give him figure for tax. At 300 a week he wont have to register for vat, He will just have one income tax return to do by the 31 october following his first year
(5) if working in building industry his principal contractor will have to register him for rct as a sub contractor and the revenue will tell them how much to deduct from payments to him. This amount will then go towards paying his income tax.

Fermatslast

Depending on how long he has been unemployed he may also qualify for one of the enterprise schemes available such as this (taken from citizens information).

"The Short-Term Enterprise Allowance (STEA) gives support to people who have lost their job and want to start their own business.

To qualify you must be getting Jobseeker’s Benefit. There is no qualifying period, which means you do not need to have been getting Jobseeker’s Benefit for a certain period of time. However, you will not qualify if you are getting Jobseeker’s Benefit and working part-time.

The Short-Term Enterprise Allowance is paid instead of your Jobseeker’s Benefit for a maximum of 1 year. It ends when your entitlement to Jobseeker's Benefit ends."

After approval for this, he should inform the revenue commissioners as any scheme has to be approved first.

If his taxes are in order he should get a tax clearance cert within a day or two.

Then he should contact an accountant to get advice on how to keep his books and records properly and his taxes up to date (if he doesn't know already)

amtc

I went to a very useful course at the local Area Partnership last week on this - for a fiver...and they stepped you through all this. Where is he based?

paulgalway

amtc wrote: »

I went to a very useful course at the local Area Partnership last week on this - for a fiver...and they stepped you through all this. Where is he based?

Galway City