Tax question

dextor03

Hi, I'm currently in full time employment but have the opportunity to work for myself outside my normal work hours. I work as an IT technician and I will be on call for a company at weekends should they need any assistance. I will charge at an hourly rate and invoice at the end of each month for the hours owed. I was wondering how to get set up on the system so I can pay whatever tax is owed. Do I need to register for VAT and charge VAT for the additional work? Do I need to be registered in any other way? Where can I find info on this? Any help is greatly appreciated.

dbran

Hi

You only need to register for VAT if you are supplying services of €37500 per annum and goods of €75000 per annum. If you are below these limits you do not have to register. You may decide that it worthwhile registering depending on who you will be invoicing.

However you are liable to income tax on all the additional income you earn from the business and you will have to declare it by filing a tax return in October every year

If you are a sole trader you can register for income tax (or VAT) using for TR1. You can download this form if you do a search on www.revenue.ie.

If you are trading under a name that is not your own you also need to register a business name with the CRO. Do a search for Business name registration on www.cro.ie.

Hope this helps

Kind Regards


David Branigan

dextor03

Thanks David, I'll be under the €37,500 mark so should be grand. Thanks again for your help!

NumbrCrunchr

If all your supplies are to VAT registered businesses..

it may be worth considering registering to get the VAT credit on your spend items like significant amounts of equipment

You must also weigh this against the cost of complying with the law

NumberCruncher