PAYE

highspeed

I recently worked off farm paying PAYE, I have been out of work now a few months so back to farming full time.

A neighbour has offered me some work, which is not full time but it would suit me at the moment.

I asked if he would be registering me as a PAYE worker and he replied that I did not need to be registered through the PAYE system as I was self employed - he told me that i could submit an invoice to him from me for work done and that he would pay it.

Has anyone heard of this being done.

atlantic mist

there is a guide on revenue site this is name of leaflet
Code of Practice for Determining Employment or Self-Employment Status of Individuals
your neighbour avoiding paying employers PRSI by contracting in which revenue will not look at favorable and tis pretty high round the 10% mark, on flip side u loose ur PAYE tax credit which means u pay more tax as pay at 20% from 8k onwards as opposed to PAYE worker who doesnt hit 20% bracket till close to 15k

Farmer Pudsey

atlantic mist wrote: »

there is a guide on revenue site this is name of leaflet
Code of Practice for Determining Employment or Self-Employment Status of Individuals
your neighbour avoiding paying employers PRSI by contracting in which revenue will not look at favorable and tis pretty high round the 10% mark, on flip side u loose ur PAYE tax credit which means u pay more tax as pay at 20% from 8k onwards as opposed to PAYE worker who doesnt hit 20% bracket till close to 15k

However you can write off expenses such as travel to and from work and or any other expenses you incur.

frazzledhome

What job will you be doing for that guy?

Absolutely nothing wrong if doing something specific.

If not happy you could go in as a Frs operator

viztopia

highspeed wrote: »

I recently worked off farm paying PAYE, I have been out of work now a few months so back to farming full time.

A neighbour has offered me some work, which is not full time but it would suit me at the moment.

I asked if he would be registering me as a PAYE worker and he replied that I did not need to be registered through the PAYE system as I was self employed - he told me that i could submit an invoice to him from me for work done and that he would pay it.

Has anyone heard of this being done.

As long as you declare the income on a tax return you are not doing anything wrong. The duty is on the person making the payment to ensure that you are paid correctly either through payroll or invoice and if the revenue ever look at it and differ as to how it should be treated they will go after him not you.

Nettleman

viztopia wrote: »

As long as you declare the income on a tax return you are not doing anything wrong. The duty is on the person making the payment to ensure that you are paid correctly either through payroll or invoice and if the revenue ever look at it and differ as to how it should be treated they will go after him not you.

Also be careful you don't exceed threshold of 37500 in a twelve month period or you must register for vat and charge vat. this covers non-farm receipts including sfp,das etc