Tax issues!!!!

Rd1983

Hi guys,lust looking for some advise on earning extra income.

I'm currently employed for an engineering company in Wexford full time.

As from a few mths ago,I've started doing some extra work at home myself.there is a guy contracting me out work,he's above board with his company,taxes,vat etc...I stand to earn from between 5k and 10k per year roughly.

My question is,what's the best way forward for me regarding paying tax on extra income?
I don't want to get stung and paying crazy tax. Will it effect my weekly wage at work?would it be best to set up a company and keep it separate?the contractor will be paying me by cheque

Hope I've explained it well,if not just ask
Thanks

Citizenpain

wont affect your regular paye work
you'll need to submit a form 11 ... tax/prsi & usc 52% if you are on the higher rate
not really any point setting up a ltd company at this level of income

Rd1983

Citizenpain wrote: »

wont affect your regular paye work
you'll need to submit a form 11 ... tax/prsi & usc 52% if you are on the higher rate
not really any point setting up a ltd company at this level of income

Have you any idea how to work out how much tax I'd pay on 10 k?would it be 40% ie 4k

Rd1983

Citizenpain wrote: »

wont affect your regular paye work
you'll need to submit a form 11 ... tax/prsi & usc 52% if you are on the higher rate
not really any point setting up a ltd company at this level of income

Have you any idea how to work out how much tax I'd pay on 10 k?would it be 40% ie 4k

Geuze

Income tax rates in Ireland are as follows:

20%
41%

The cut-off point for single people is very low at 32,800.

So income above 32,800 is taxed at 41%.

Geuze

At end of year, when you know your P60 wages from employer, and the profit from your own trade, you fill in a Form 12 or Form 11.

See www.revenue.ie

Both incomes are added and taxed as normal.

Citizenpain

Form 12 won't do for 10k non paye income . Use form 11..... If you are paying at the higher rate in your paye job .. 10k minus whatever expenses you have X 52% for tax USC and prsi

Rd1983

Citizenpain wrote: »

Form 12 won't do for 10k non paye income . Use form 11..... If you are paying at the higher rate in your paye job .. 10k minus whatever expenses you have X 52% for tax USC and prsi

Any examples of what expenses you can claim besides diesel?

Citizenpain

Rd1983 wrote: »

Any examples of what expenses you can claim besides diesel?

http://www.revenue.ie/en/business/running/allowable-expenses.html

Rd1983

Citizenpain wrote: »

http://www.revenue.ie/en/business/running/allowable-expenses.html

So basically is it a case of trying to figure it out as you go along per job what tax you need to pay to renenue at the end of the year?say if I make 10k,I need to keep roughly 4k to send in at the end of the year?

Citizenpain

Pretty much yeah .... Look up "preliminary tax " too. You pay towards your tax bill for the current year in October as well.

Rd1983

Citizenpain wrote: »

Pretty much yeah .... Look up "preliminary tax " too. You pay towards your tax bill for the current year in October as well.

One last question,is there anyway of cashing/lodging a cheque without declaring it and possibly getting away with it?
Either lodging it in your personal account or say lodging it in a credit union(if they accept cheques)

3DataModem

Rd1983 wrote: »

One last question,is there anyway of cashing/lodging a cheque without declaring it and possibly getting away with it?
Either lodging it in your personal account or say lodging it in a credit union(if they accept cheques)

You aren't permitted to ask stuff like that here.

And the above won't work for long.

Rd1983

Citizenpain wrote: »

Pretty much yeah .... Look up "preliminary tax " too. You pay towards your tax bill for the current year in October as well.

One last question,is there anyway of cashing/lodging a cheque without declaring it and possibly getting away with it?
Either lodging it in your personal account or say lodging it in a credit union(if they accept cheques)

Rd1983

3DataModem wrote: »

You aren't permitted to ask stuff like that here.

And the above won't work for long.

Fair enough,just trying to rule it out completely.

srsly78

You can lodge it wherever you want, or stuff it in your mattress. Doesn't matter, the tax system for self-employed people works via self-assessment.

If you were to make a mistake and neglect to declare your income this could lead to heavy fines in the future.

Mr. Incognito

Rd1983 wrote: »

One last question,is there anyway of cashing/lodging a cheque without declaring it and possibly getting away with it?
Either lodging it in your personal account or say lodging it in a credit union(if they accept cheques)

Read the charter- Thread closed.