General tax knowledge

thejourney

I searched for my answer and could not find what I wanted.

Can someone help with this tax question on income, I am thinking about becoming an accoutant (Night classes)


Person A. Married. No Children. He pays the lower tax (Wife takes the higher)
Earns the following:
PAYE 70,000 Per year
Income from Rent 9,000 per year
Income from shares 2000 per year
investment in friends company 3000 per year

Person A wants to fix bikes when free from work. He will use his own name. He does not need to register as a sole trader or

Person does not need to register with CRO. He just pays 40% tax on profits at the end of year from fixing bikes. He does this by declaring this income...Correct?

Exampe
Person A www.fixbike.ie 4000 per year

Any problems?

barneystinson

I love how your idea of asking a question is to say what you think and then say "correct?"...

thejourney

barneystinson wrote: »

I love how your idea of asking a question is to say what you think and then say "correct?"...

We are all just trying our best here barry to make it

Mr. Incognito

I have no idea what the question is.

You are assessed on ALL of your income for income tax.

thejourney

Mr. Incognito wrote: »

I have no idea what the question is.

You are assessed on ALL of your income for income tax.

The questions is this:

Can he fix bikes on the side, while also working his 9-5 job.

Does he have to register as a sole trader? He will be using his own name?

Or can he just use his own name and declare the extra income at the end of the year? He won't be employing anyone. He alrady has personal insurance. he does the repairs at home

thejourney

Any taker?

tanit

thejourney wrote: »

The questions is this:

Can he fix bikes on the side, while also working his 9-5 job.

Does he have to register as a sole trader? He will be using his own name?

Or can he just use his own name and declare the extra income at the end of the year? He won't be employing anyone. He alrady has personal insurance. he does the repairs at home

The rental income and the other investment income suggest he needs to fill out F11. Either him or the wife have to be declaring those incomes on an annual basis.

In that case his sole trader income can be included on that one if they are jointly assessed along with the other incomes. He doesn't need to register as a sole trader, as far as I know there is no such a thing, you either register for income tax outside the PAYE system or you are PAYE. And without the need for a Vat number your PPS number becomes your Income Tax number.

I think it's going to depend on whether the couple are jointly assessed or not and how all the incomes are declared right now.

Can anyone correct me please? The way the question was laid out confuses me a bit.:o:o

thejourney

tanit wrote: »

The rental income and the other investment income suggest he needs to fill out F11. Either him or the wife have to be declaring those incomes on an annual basis.

In that case his sole trader income can be included on that one if they are jointly assessed along with the other incomes. He doesn't need to register as a sole trader, as far as I know there is no such a thing, you either register for income tax outside the PAYE system or you are PAYE. And without the need for a Vat number your PPS number becomes your Income Tax number.

I think it's going to depend on whether the couple are jointly assessed or not and how all the incomes are declared right now.

Can anyone correct me please? The way the question was laid out confuses me a bit.:o:o

Ok, thats interesting.

How do they register for Income tax? Ring them

So they only us there PPS number?

tanit

First you only register in the CRO business names or companies. And a business name is not an obligation as far as I know but if you register a name nobody else after you can use. Please people that know correct me.

Regarding the income if you have rental income and shares and the like, someone has to be doing an F11 and the extra income as a sole trader can be included in there as an extra in the trades section for the husband. The income tax number is going to be the PPS number is the way you are identified by Revenue. You need to clarify how are those investments incomes declared right now because either they are not declared or are being declared by your wife and she might be the one filling out the F11

thejourney

tanit wrote: »

First you only register in the CRO business names or companies. And a business name is not an obligation as far as I know but if you register a name nobody else after you can use. Please people that know correct me.

Regarding the income if you have rental income and shares and the like, someone has to be doing an F11 and the extra income as a sole trader can be included in there as an extra in the trades section for the husband. The income tax number is going to be the PPS number is the way you are identified by Revenue. You need to clarify how are those investments incomes declared right now because either they are not declared or are being declared by your wife and she might be the one filling out the F11

No, this is not me. Just an example. The rent and investment bit is not relevant .

But the extra income.

So you can be a paye and a sole trader ?

So you can be a paye and a director of another company?

So you don't register as sole trader ? ahh I understand

I though you register as a sole trader. I learned something there.

tanit

thejourney wrote: »

No, this is not me. Just an example. The rent and investment bit is not relevant .

But the extra income.

So you can be a paye and a sole trader ?

So you can be a paye and a director of another company?

So you don't register as sole trader ? ahh I understand

I though you register as a sole trader. I learned something there.

The rent and investment income need to be declared on an F11 so they are relevant. If it's just a PAYE taxpayer with non-PAYE income up to 5,000 you can deal with it through the Paye system and fill out the F12 or P21 with the additional incomes.

This is a Guide to Self Assessment from Revenue

CIARAN_BOYLE

thejourney wrote: »

I though you register as a sole trader. I learned something there.

You register as a chargeable person who needs to file a form 11 income tax return with income from non PAYE sources of €3,174. Your hypothetical person has done this on his rental income (I assume).