Getting the odd paid job but asked for an invoice

homerun_homer

There's a few threads about paid photo work on the forum at the minute and I didn't want to hijack any to ask this question.

I am in employment and haven't taken on any paid photo work previous to a recent quick job I did for a friend of a friend. I only charged €150 for it (photos to promote their business on their website being developed) but was asked to provide an invoice. After talking about the potential ramifications of this with a friend who knew a bit about business she said there's no point registering as a small business just for the sake of that small sum as it wouldn't be worth the expense.

Do others who do photography on the side have themselves registered as a business for the odd paid work and if so at what point do you go from getting paid a few quid for some photos to registering yourself as a business so you'd have to pay tax on those earnings?

Reoil

I pay my taxes in my software job.
If I happen to make a little money outside of that from a friend then it's nobody's business but mine.

Wabbit Ears

How annoying is that!! So many catch 22's with friends involved and cost of registering as a sole trader and cash price, vs invoiced price.

Paulw

You send the invoice, as required.

You declare the amount in the Revenue website as additional income. Simple.

AnCatDubh

Reoil wrote: »

I pay my taxes in my software job.
If I happen to make a little money outside of that from a friend then it's nobody's business but mine.

The law may think otherwise......

AnCatDubh

homerun_homer wrote: »

After talking about the potential ramifications of this with a friend who knew a bit about business she said there's no point registering as a small business just for the sake of that small sum as it wouldn't be worth the expense.

You don't have to register as a business to send an invoice.

Create one in your word processor with your name on top of it, send it to your client and declare it to the nice revenue people who will cordially releave you of a sum at the higher % rate of tax which you are normally liable for (include a deduction of directly related expenses in the declaration).

Note: You may be severely annoyed at the nice revenue people, and curse them from a height, but that's life for us.

beauf

Reoil wrote: »

I pay my taxes in my software job.
If I happen to make a little money outside of that from a friend then it's nobody's business but mine.

Unless the friend declares it from their side....

homerun_homer

AnCatDubh wrote: »

You don't have to register as a business to send an invoice.

Create one in your word processor with your name on top of it, send it to your client and declare it to the nice revenue people who will cordially releave you of a sum at the higher % rate of tax which you are normally liable for (include a deduction of directly related expenses in the declaration).

Note: You may be severely annoyed at the nice revenue people, and curse them from a height, but that's life for us.

I've made an invoice and sent it off alright without hassle. Just wondering about the official process and whether, if this were to become a regular occurrence throughout a year would one need to register or notify revenue another way. Thanks for clarifying that.

Pawwed Rig

If you are making small amounts of income that does not have tax deducted you can declare it by filling in a Form 12 (if you are PAYE downloadable from Revenue.ie). You are liable to tax at the highest rate you pay normally.

The guy who says it is noone else business what he earns in his spare time is able to undercut the honest photographer by upto 55% (the highest tax rate) never mind the VAT saving. It is no different to any other form of tax evasion or black economy activities (such as evading duty on cigarette imports).

Sorry not a photographer but just saw this on the front page:)

Paulw

homerun_homer wrote: »

I've made an invoice and sent it off alright without hassle. Just wondering about the official process and whether, if this were to become a regular occurrence throughout a year would one need to register or notify revenue another way. Thanks for clarifying that.

No, you don't need to notify anyone, and don't need to setup a company. You just declare it to the Revenue as additional income. Easy to do.

pixbyjohn

AnCatDubh wrote: »

The law may think otherwise......

The law DO think otherwise

Reoil

AnCatDubh wrote: »

The law may think otherwise......

If a friend gives you a €50 note for helping him to paint his fence, would you go running to the government to give them €10?

Pawwed Rig

Reoil wrote: »

If a friend gives you a €50 note for helping him to paint his fence, would you go running to the government to give them €10?

Would you or Should you?
If you are accepting payment then Yes you should.

beauf

Reoil wrote: »

If a friend gives you a €50 note for helping him to paint his fence, would you go running to the government to give them €10?

Maybe he will declare it not realizing it will come back to you.

percy212

If your friend wants an invoice so that he/she can declare the 150 as a business expense then you explain to him/her that the 150 was a hobby rate covering your expenses on a 'training exercise'. An invoiced amount will be 150 + your taxable amount as you will need to declare the fee as income and pay tax.

AnCatDubh

Reoil wrote: »

If a friend gives you a €50 note for helping him to paint his fence, would you go running to the government to give them €10?

If i was helping a friend to paint a fence, he/she wouldn't be giving me a €50 note. Friends don't charge friends €50 to paint a fence (or accept payment from said friend). Not in my book. Same with photography.

For all else, apply the law.