Tax question: I am a PAYE customer but I also have a side hustle with no income yet.

pancake12

Hi, Can someone clarify this for me please. I have a full time job and I am a PAYE worker. I am also a personal trainer and nutrition coach part time, ( I started this year). I only have expenses so far, no income yet. I have contacted the tax office to ask about the tax implications. They advised if my income is less than 5000 EUR, I will have to declare it, which is ok. But what about the expenses I have had so far this year? Will I need to declare that also, and will I get a tax refund on that, or how does this go in real life? Thanks in advance.

Mrs OBumble

No tax refund on expenses. But you only need to pay tax on your profit, not your whole income.

Profit = income minus allowable expenses.

While your profit is less than 5000, you don't need to register as self employed. Instead you go into MyAccount on revenue and declare the profit as extra income.

If your profit is more than 5000, you need to register as self-employed, and complete an income tax return (called a Form 11) each year.

Can you do cash only for your side hussle? I do. Pulling in around 7500 euro a year from that. All cash.

Mrs OBumble

https://www.boards.ie/discussion/comment/122990841#Comment_122990841

Tax is still due on the profits, no matter what payment method is used 😀

And Revenue inspectors have been known to book personal training sessions, and then later audit and look for the associated declaration for the transaction.

relax carry on

https://www.boards.ie/discussion/comment/122990841#Comment_122990841

https://www.revenue.ie/en/additional-incomes/is-your-extra-income-taxable/index.aspx

You can get paid however you like but as it's income, it's declared annually in your annual tax return.

https://www.boards.ie/discussion/comment/122991141#Comment_122991141

Not if you are paye and getting cash from a side gig.

relax carry on

https://www.boards.ie/discussion/comment/122991575#Comment_122991575

The option is there for anyone not to declare their income just like the consequences of the non declaration is there for those who have the misfortune of discovering the consequences when it catches up with them.

SureYWouldntYa

https://www.boards.ie/discussion/comment/122990853#Comment_122990853

Curious about this practice from Revenue in practicality

You’d have to be setting up the ‘trap’ well in advance, even for a booking in December 2024 the earliest you can practically do a review is early 2026 once their 2024 return is submitted in Nov 2025, if their year end was Oct for example it would be in the Oct 2025 year end for their 2025 return submitted Nov 2026, so review cant be done until early 2027

nhg

https://www.boards.ie/discussion/comment/122999736#Comment_122999736

No matter when the review was completed you would still owe the tax due on the undeclared profit which may also incur interest & penalties - costing the individual more in the long run……