Confused - Money earned outside of PAYE

vqr2a0kg3lywos

Hey all,

Will try and keep this as brief as possible.

I'm employed in a full time role where I get paid via PAYE.

I have also recently enough started earning a little money on the side from YouTube.

I'm getting super confused about how I submit this as additional tax, whether I need to register as a sole trader or what.

If I wanted to pay tax on the amount earned in 2018 am I already way past the cut off for that?

For 2019 do I need to put what I think I'll earn in additional professional income? This seems to take my tax credits down (which makes sense).

How would I go about paying the full amount of tax (whatever it ends up being) at the end of 2019?

If it helps:

Earnings through PAYE - over 30,000
Earnings through YouTube - likely to be over 5,000

Thanks for any help.

runawaybishop

You pay the 2018 tax in October/November 2019 so you are grand. When I first started consulting I had to get registered for income tax and I got an accountant to deal with the rest, it's was cheap and tax deductable. Worth it for the peace of mind imo as I kept getting different numbers when calculating my liability and couldn't find definitive answers online.

Tax owed will be taken in mid November if the return is submitted online but bear in mind you usually pay in advance so your bill will be 2018s tax by 2 to cover predicted 2019 earnings.

vqr2a0kg3lywos

So even though I'm not set up as a business I can still deduct tax against stuff I buy for YouTube?

I.E if I buy a computer to use for creating videos can I claim the tax back?

How do I register for income tax? Will my employer be notified when I do that?

spurious

You can register online is you have an account set up on revenue.ie

runawaybishop

Danna Salmon Boot wrote: »

So even though I'm not set up as a business I can still deduct tax against stuff I buy for YouTube?

I.E if I buy a computer to use for creating videos can I claim the tax back?

How do I register for income tax? Will my employer be notified when I do that?

You aren't earning enough to get vat free as far as I know, but an account would tell you.

Employer won't know.

Wegian

runawaybishop wrote: »

Tax owed will be taken in mid November if the return is submitted online but bear in mind you usually pay in advance so your bill will be 2018s tax by 2 to cover predicted 2019 earnings.

But surely you are not liable to pay two years tax in one payment? Ie: 2018 actual and 2019 predicted tax in November 2019?

vqr2a0kg3lywos

spurious wrote: »

You can register online is you have an account set up on revenue.ie

I have an account on revenue but not ROS (think that's different?)

Is just having a revenue account enough? There's just so many places within that you can submit tax and I'm not 100% sure where I need to submit what I earned in 2018.

runawaybishop

Wegian wrote: »

But surely you are not liable to pay two years tax in one payment? Ie: 2018 actual and 2019 predicted tax in November 2019?

You are

Charmeleon

Danna Salmon Boot wrote: »

I have an account on revenue but not ROS (think that's different?)

Is just having a revenue account enough? There's just so many places within that you can submit tax and I'm not 100% sure where I need to submit what I earned in 2018.

Yes, you can declare up to €5,000 using MyAccount on the PAYE login. You just click through all the info Revenue already have filled in for the year and there’s a single box to enter the total amount if it’s all from the same source.

vqr2a0kg3lywos

Charmeleon wrote: »

Yes, you can declare up to €5,000 using MyAccount on the PAYE login. You just click through all the info Revenue already have filled in for the year and there’s a single box to enter the total amount if it’s all from the same source.

But once it's over 5,000 (I know it already is for 2018 - around 7000 probably), I have to register under ROS?

Ninthlife

Danna Salmon Boot wrote: »

But once it's over 5,000 (I know it already is for 2018 - around 7000 probably), I have to register under ROS?

You must register for Income Tax and as a result you will be required to file a form 11 via ROS

vqr2a0kg3lywos

Ninthlife wrote: »

You must register for Income Tax and as a result you will be required to file a form 11 via ROS

Okay thanks, that's what I was hoping to avoid but looks like I'll need to.

Think I'll look for an accountant to help. How early can I get them involved?

Any idea how much that costs?

Can I deduct expenses even without formally being a business? For example if I bought a PC which I need to make videos?

Ninthlife

Danna Salmon Boot wrote: »

Okay thanks, that's what I was hoping to avoid but looks like I'll need to.

Think I'll look for an accountant to help. How early can I get them involved?

Any idea how much that costs?

Can I deduct expenses even without formally being a business? For example if I bought a PC which I need to make videos?

No need for an accountant. You can do it all yourself online.

I think there are youtube video tutorials!

vqr2a0kg3lywos

Ninthlife wrote: »

No need for an accountant. You can do it all yourself online.

I think there are youtube video tutorials!

Cool, will look into it. Already stuck at the first hurdle - Applying for RAN number. It asks for my Registration number, will have to figure out where that comes from.

Thought it might be my PPS but that isn't working.

Ninthlife

Danna Salmon Boot wrote: »

Cool, will look into it. Already stuck at the first hurdle - Applying for RAN number. It asks for my Registration number, will have to figure out where that comes from.

Thought it might be my PPS but that isn't working.

You need to register your PPS number for Income Tax first before applying for ROS cert

vqr2a0kg3lywos

So I thought I had to complete a form 11 for income earned outside of PAYE with my employer but I forgot I asked revenue directly via a message and they've sent me this:

"To file a return for income earned outside your PAYE income:

Sign into your My Account

Chose review my tax 2015-2018

Then choose 2018

Now choose Form 12

When filling out the Form 12, your PAYE income will be pre filled according to our records.

Just under this you will have the opportunity to add, "non PAYE income"

Fill in your extra income here.

That's it, just return the Form.

you do not have to add any 2019 income at all.

A review will issue and if you are do to pay any extra income tax a P21 statement will issue to you advising you how much and how you can pay.


Kind Regards,"

So it sounds like I don't need to do this 11 form. Does this sound right?

I see the "other income" tab but not really sure which one to use for YouTube earnings.

is_that_so

Danna Salmon Boot wrote: »

But once it's over 5,000 (I know it already is for 2018 - around 7000 probably), I have to register under ROS?

Yeah you should do that ASAP and it's more convenient for what you're doing. The handy thing about ROS now is that it will roll any PAYE earnings into any tax calculations.

vqr2a0kg3lywos

is_that_so wrote: »

Yeah you should do that ASAP and it's more convenient for what you're doing. The handy thing about ROS now is that it will roll any PAYE earnings into any tax calculations.

Did you see my message above?

Revenue got back to me and just said to amend my form 12. But nor really sure whether this is correct or not.

Or is it still a case that because it's over 5,000 in earnings I have to go the ROS and form 11 route?

barneystinson

Danna Salmon Boot wrote: »

So I thought I had to complete a form 11 for income earned outside of PAYE with my employer but I forgot I asked revenue directly via a message and they've sent me this:

"To file a return for income earned outside your PAYE income:

Sign into your My Account

Chose review my tax 2015-2018

Then choose 2018

Now choose Form 12

When filling out the Form 12, your PAYE income will be pre filled according to our records.

Just under this you will have the opportunity to add, "non PAYE income"

Fill in your extra income here.

That's it, just return the Form.

you do not have to add any 2019 income at all.

A review will issue and if you are do to pay any extra income tax a P21 statement will issue to you advising you how much and how you can pay.


Kind Regards,"

So it sounds like I don't need to do this 11 form. Does this sound right?

I see the "other income" tab but not really sure which one to use for YouTube earnings.

If you submit a F12 with more than 5k in non-PAYE income, the system will not allow a P21 balancing statement to issue, it’ll bounce back to you.

Stop faffing and just register for income tax as a sole trader in respect of your second income.

Pawwed Rig

Form 12 and Form 11 are fairly similar for your purposes.
Your main problem with calculating IT is that you are straddling the 20% and 50% rates. A rough estimate on tax to be paid is about €1,300. Double that for preliminary tax for 2019.

A tax advisor would do this fairly easily. The cost would depend on who you ask. Some firms for example are setting minimum rates to focus on larger cases. Best thing for you would be a small practise or individual.

vqr2a0kg3lywos

Thanks all - appreciate it.