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Tax on extra income

  • 27-07-2020 11:30am
    #1
    iAcesHigh
    Registered Users, Registered Users 2 Posts: 447 ✭✭


    There is a chance I might be getting gig on the side in the coming months and I've been told payments usually go through PayPal (they might be able to arrange it through bank transfer, but not yet sure). If that's the case:
    1. How can I declare that income to Revenue (I presume it's easier if it simply lands in my Irish bank account?)?
    2. When do I pay the tax on such an income (with the tax back for 2020, so next year?)?


Comments

  • #2
    BMHOPE
    Registered Users, Registered Users 2 Posts: 78 ✭✭BMHOPE


    iAcesHigh wrote: »
    There is a chance I might be getting gig on the side in the coming months and I've been told payments usually go through PayPal (they might be able to arrange it through bank transfer, but not yet sure). If that's the case:
    1. How can I declare that income to Revenue (I presume it's easier if it simply lands in my Irish bank account?)?
    2. When do I pay the tax on such an income (with the tax back for 2020, so next year?)?

    If your main source of income is PAYE income, then fill out a form 12, if it's self employed register for Income tax and fill out short form 11 (unless you have shares, cgt etc.) You have until the 31st Oct in the year to pay preliminary tax on the income earned ie. If 2020 income 90% of current years liability or 100% of previous years liability must be paid before 31/12/2020 but you have until the 31/10/2021 to file the return, if you file it before 31/08/21 then Revenue will compute tax payable for you but after that it's a self computation. There are extended dates for online filing, usually 2 weeks and most people are required to file online now unless you have been granted an exemption. Register for my account/ros. Revenue give a step by step pay and file guide on their website.


  • #3
    BMHOPE
    Registered Users, Registered Users 2 Posts: 78 ✭✭BMHOPE


    Forgot to say, it sounds like there is an international element to this, where is the work being carried out? Is it Ireland or abroad? The double taxation agreement may come into play. Also are you irish domiciled?


  • #4
    iAcesHigh
    Registered Users, Registered Users 2 Posts: 447 ✭✭iAcesHigh


    I do have some shares on the side, paying CGT on them when selling - is that influencing it? And yes, it's from Spain but I suppose there is no double taxation for that...

    Also, as you didn't mention it, I presume it's all the same if I get the money through PayPal or bank transfer?
    BMHOPE wrote: »
    You have until the 31st Oct in the year to pay preliminary tax on the income earned ie.
    How do I pay preliminary tax if I don't know how much I will earn till end of year - assuming I get €1k in August and September then I would pay the same amount for the remaining three months no matter if I really earn that or did I get that one wrong?


  • #5
    iAcesHigh
    Registered Users, Registered Users 2 Posts: 447 ✭✭iAcesHigh


    BMHOPE wrote: »
    If your main source of income is PAYE income, then fill out a form 12, if it's self employed register for Income tax and fill out short form 11 (unless you have shares, cgt etc.) You have until the 31st Oct in the year to pay preliminary tax on the income earned ie. If 2020 income 90% of current years liability or 100% of previous years liability must be paid before 31/12/2020 but you have until the 31/10/2021 to file the return, if you file it before 31/08/21 then Revenue will compute tax payable for you but after that it's a self computation. There are extended dates for online filing, usually 2 weeks and most people are required to file online now unless you have been granted an exemption. Register for my account/ros. Revenue give a step by step pay and file guide on their website.

    so if I got it correctly, by Oct 31 this year I need to pay taxes on all income received this year?


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