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Tax on contracting work and earnings outside of main job

  • 13-10-2014 8:51am
    #1
    Dark Phoenix
    Registered Users, Registered Users 2 Posts: 1,185 ✭✭✭


    I work full time for a company.

    I also do a few hours a week somewhere else (Im not an employee I just invoice them for work done) and a small amount of other work in my own time. My accountant told me to keep a record of the income and all the expenses so that I can show how much earned after expenses at end of year. I'll do that and to be honest after expenses it won't be much .

    However im just wondering how much tax i'll need to pay on any earnings - will it be 42% as my main job is taxed at that or will it be less?

    Also, if I was to trade services with the company I currently invoice and got free services from them in return for free services from me without either of us paying tax on it (as no money would be changing hands as its a barter agreement instead) is that allowed?

    any advice appreciated.


Comments

  • #2
    Mrs OBumble
    Registered Users, Registered Users 2 Posts: 26,295 ✭✭✭✭Mrs OBumble


    Yes, it will be 42% - and actually more like 52% once you add in the USC and PRSI which will also be charged.

    I'm pretty sure that trading in services attracts tax liability too - but talk to your accountant about that, there may be some ways that you can be compensated that don't.


  • #3
    Dark Phoenix
    Registered Users, Registered Users 2 Posts: 1,185 ✭✭✭Dark Phoenix


    Thanks a million for the reply. God the 42/52% is harsh, really would put you off working more!

    Luckily though to be honest anything i've earned has been reinvested in training or in equipment so theres not really any 'profit' for them to tax but its still hard to give them half of it!

    I'm due to meet accountant in Feb to go through it all so will get her advice on it then and maybe what I need to start doing is to provision money each month so that I have it there to pay it.


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