Income Tax Help!

Andira11

Hey, I was wondering if someone would be able to help me on calculating income tax. It is a little complicated... I was working as a PAYE employee for the first 4 months of 2017 (no tax paid as was not earning enough). I then worked as a sole trader for 5 months and after this I went back to being a PAYE employee for the remaining 4 months of 2017.

I am about to file my tax returns and I am trying to figure out the amount but I am confused on whether the income tax for the sole trader is calculated separately from the PAYE jobs as I know the rates and tax credits are different for sole traders or do I calculate it based off of total income from all three jobs?

Happy4all

Andira11 wrote: »

Hey, I was wondering if someone would be able to help me on calculating income tax. It is a little complicated... I was working as a PAYE employee for the first 4 months of 2017 (no tax paid as was not earning enough). I then worked as a sole trader for 5 months and after this I went back to being a PAYE employee for the remaining 4 months of 2017.

I am about to file my tax returns and I am trying to figure out the amount but I am confused on whether the income tax for the sole trader is calculated separately from the PAYE jobs as I know the rates and tax credits are different for sole traders or do I calculate it based off of total income from all three jobs?

All income on a form 11. Are you registered with ROS to file online?

Andira11

Yes I am registered with ROS to file online and have read over the Form 11 but not filled it in yet. I am trying to calculate the amount of income tax I owe but I am confused on whether this is calculated based on total yearly income or just for the time period when I was a sole trader.

Happy4all

Andira11 wrote: »

Yes I am registered with ROS to file online and have read over the Form 11 but not filled it in yet. I am trying to calculate the amount of income tax I owe but I am confused on whether this is calculated based on total yearly income or just for the time period when I was a sole trader.

Total years income. ROS should be pre populated with the income from PAYE employment income and it will give you a credit for tax paid through payroll wages.

wiggle16

You put in your total income. The rates of tax are NOT different for PAYE and sole traders etc. You pay the same rates of tax no matter what you do.

Online, your PAYE will prepopulate (the figures will already be entered in the boxes from Revenue's records) and all you have to do is check that they are correct. You will be putting your sole trader income in the self-employed income section and you'll be claiming your credits. The form itself is a glorified calculator and will calculate the tax due.

As a rule of thumb with the Form 11, complete whatever fields apply to you, to include all of your income on the form, and leave everything else blank.

OEP

I hope you don't mind but I'm going to ask a question in this thread rather than start a new one.

I'm in a similar situation. For the first 4 months of 2018 I worked as PAYE employee in Ireland and paid tax. I then worked from June to ongoing for a Swiss company paid through Switzerland (first 3 months working in the US and then Ireland now). It was on a contract basis but I didn't set up a company or anything, they just pay straight into my bank account.

My question is, do I have to file anything this year? And how do I declare expenses vs fees?

Thanks.