help with income return!!

freelancerTax

hi all,
here is my situation - in 2005 registered as self employed so i could do freelance work, that was all fine and i did my tax return for 2005 and 2006 last year, it was quite straight forward. i am not registered for vat as my self employed income is less then 27k per year

For my 2006 return i didnt pre pay anything for my 2007 tax year as i had decided not to do anymore freelance work ( i also had a full time paye job ) in 2007 so my self emplyoed income for 2007 was set to be zero.

at the start of july 2007 i moved to spain to live and work, i also made a decision to take on freelance work again but only did so after i left ireland. i had thought i would stay in spain for many years so i visited revenue to see what my tax obligations where. they told me that i would pay irish tax until the day i left and move to the spainish system after that.

while there i had a fulltime job where i paid spainish tax and did freelance work for an irish company also, i didnt pay tax for the freelance work yet. things didnt work out and i ended up returning to ireland after one year. its comming up to tax returns time for me again now so i am a bit confused over how to do my income return for 2007.

how does this work out for me now? do i pay irish tax on the time i spent in ireland and spainish tax on the time i spent in spain, or all on the irish system taking away what i already payed on the paye equivelent in spain?

also how will the full time job income i earned in spain for 2008 affect my tax credit for my new full time job here - should it not affect my tax credits as you recieve no tax credits in spain (you pay tax and a much higher rate on 100% of your income)?

i have another question - how is the year i pay tax on a job determined? for example i do a job in september 2006 - i invoice in janurary 2007 and also recieve payment in janurary 2007 - what year do i include this in my income return 2006 or 2007?

thanks for reading sorry its so long, just getting a little stressed :P

thanks,
TF

Baby4

This post has been deleted.

freelancerTax

hi baby4,
im back in Dublin, southside.

cheers,
TF

Mr. Incognito

For 2007

You are in Ireland Jan- July 2007. Irish Tax Resident. Irish tax payable on worldwide income.

If you had left to go to spain you could have applied for split year residence relief which is the intention to be non resident the following year. When did you come back in 2008? You'll probably be resident in 2008 on the 280 day look-back anyway.

So, where does this leave you. For 2007 you will have to pay Irish tax on all income earned in Ireland and in Spain on a receipts basis, i.e Job in 2006, money received in 2007 is taxable in 2007. You will have to file a Form 11. A credit is available in Ireland for foreign tax suffered in Spain under the terms of the Double tax treaties. You WILL need professional help to do this as you will have to do an effective rate calculation.

also how will the full time job income i earned in spain for 2008 affect my tax credit for my new full time job here

Chalk and cheese- no effect whatsoever.

freelancerTax

ok sentantal,
thanks for answer some of the questions

right so - anyone up to the job - no vat returns just income return for a few freelance jobs>?

if anyone is interested please pm me with rates

thanks
FT