Independent consultant tax question

izzyflusky

Hi! I am a full time worker. Recently I have come to an agreement with a company and will provide them some services as an independent consultant and will be paid according the the numbers I reach. This means that one month I could be providing such service and then spend a few months without any involvement.

I have received a letter of collaboration stating the terms. Now, how do I get taxed on this? Do I inform revenue? Is there a specific form? I'm completely lost.

Alan Shore

Your post is a little unclear.

Are you going to be self employed and a PAYE worker at the same time?

You are self employed so you need to register for Income Tax Form TR1, depending on your turnover you may need to register for VAT.

Then each year before 31 October you have to file a return with revenue for your previous year.

izzyflusky

I can see what you mean.

I'll have a full time job and I would be doing this on a casual basis. The agreement letter I've been sent states that they do not deal with any of my taxes as I will not be their employee. So I'm confused as to what would be the appropriate course of action in this situation.

Alan Shore

Well if your self employed then you should register with TR1. Open a new bank account and pay all your business related expenses from it.

If your turnover is less than 37,500 per annum you don't have to register for VAT.