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PAYE + Non-PAYE earnings + PPS Number, Form 12

  • 17-10-2018 08:26AM
    #1
    cojobt
    Closed Accounts Posts: 206 ✭✭


    Hi,

    I'm mostly a PAYE earner, over €48k, but recently developed a very cheap website (a once-off sideline, mostly a favour) for someone receiving a public funded grant for it. The invoice is €1200, and the grant issuer wants an invoice with full personal details, PPS number and VAT number (don't have one).

    Will I have to complete a Form 12 Tax Return and declare the €1200? If I do will I be hit with at least 50% tax? Would I have to do so by October 31st? Had I realised this I would have charged a bit more for this 'favour'.

    What would happen if I didn't fill in a Form 12?


Comments

  • #2
    arriba
    Registered Users, Registered Users 2 Posts: 15 ✭arriba


    Yes, you would need to complete the Form 12 to include the non-PAYE income as it is a taxable income. Tax due would be 40% (because you're in the 40% tax bracket) plus the USC. If this income was this year, complete the 2018 Form 12 once you receive the P60 from your PAYE employer next year.


  • #3
    cojobt
    Closed Accounts Posts: 206 ✭✭cojobt


    The cheque was handed over and lodged this week, Oct. 15th. So I should wait until next year to report the €1200? Would I be able to gather receipts which might relate to those earnings, to claim back? Like cost of website hosting, wordpress theme purchase, relevant software? Can I submit receipts of all these and claim them against the €1200 specifically?

    Thanks for taking the time to answer. New to non-PAYE earnings.


  • #4
    Mrs OBumble
    Registered Users, Registered Users 2 Posts: 27,019 ✭✭✭✭Mrs OBumble


    cojobt wrote: »
    The cheque was handed over and lodged this week, Oct. 15th. So I should wait until next year to report the €1200? Would I be able to gather receipts which might relate to those earnings, to claim back? Like cost of website hosting, wordpress theme purchase, relevant software? Can I submit receipts of all these and claim them against the €1200 specifically?

    Thanks for taking the time to answer. New to non-PAYE earnings.

    Yes. This years earning are reported next year.

    You don't submit receipts to Revenue. But you do prepare yourself some accounts showing your income less expenses.

    What you pay tax of 40% + USC + PRSI on is the profit ie income less expenses.


  • #5
    cojobt
    Closed Accounts Posts: 206 ✭✭cojobt


    Mrs OBumble wrote: »
    Yes. This years earning are reported next year.

    You don't submit receipts to Revenue. But you do prepare yourself some accounts showing your income less expenses.

    What you pay tax of 40% + USC + PRSI on is the profit ie income less expenses.

    Ok, thank you. How do I prove expenses?


  • #6
    [Deleted User]
    Posts: 9,954 ✭✭✭ [Deleted User]


    cojobt wrote: »
    Ok, thank you. How do I prove expenses?

    With receipts, but you only need to produce then if audited.


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  • #7
    CGI_3
    Registered Users, Registered Users 2 Posts: 303 ✭✭CGI_3


    Can the OP able avail of the earned income tax credit? (I've posted a related query on another thread)


  • #8
    Stratvs
    Registered Users, Registered Users 2 Posts: 954 ✭✭✭Stratvs


    CGI_3 wrote: »
    Can the OP able avail of the earned income tax credit? (I've posted a related query on another thread)

    They are already a PAYE worker and you can claim only one, either EI Credit or PAYE credit whichever is able to be used more. With salary of €48K they are using the €1,650 already.


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