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Musician - Sole Trader.

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  • 08-04-2015 10:25pm
    #1
    Medic475
    Registered Users Posts: 290 ✭✭


    Hi.

    I'm sorry if this has been asked already but I didn't see a thread similar to my situation.

    Just looking for opinions on the following....

    1. I am in full time permanent employment in my normal job.
    2. I'm also a Musician and have a chance to make €100 cash (give or take) a week from this. Some weeks I'll make more and some weeks I won't have any gig at all.
    3. Do I need to declare this?
    4. Several people told me I should register as a Sole Trader. Should I?

    Thanks in advance!


Comments

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    #2
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    Put it this way, you would be the most diligent musician in Ireland declaring a 100 quid a week here and there for gigs!


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    #3
    unnameduser
    Registered Users Posts: 1,081 ✭✭✭unnameduser


    It's all well and good until the brown envelope from Revenue comes in the letter box.

    Revenue officials can end up finding you on any paper/facebook page/flyer you end up being listed on.

    I'd register for peace of mind.


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    #4
    dbran
    Registered Users Posts: 2,094 ✭✭✭dbran


    Hi

    You should declare it although it is a relatively small amount of income. All that has to happen is the venue gets a revenue audit and they just follow the paper trail to you. Dont be thinking that just because he is paying you cash that you are not going through his books.

    You will also be entitled to various expenses and deductions so that the level of income tax could be relatively small. You may not need to register as self employed but simply complete a Form 12 each year.

    Best of luck with it.

    dbran


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    #5
    Mrs OBumble
    Registered Users Posts: 25,967 ✭✭✭✭Mrs OBumble


    Deleted User wrote: »
    Put it this way, you would be the most diligent musician in Ireland declaring a 100 quid a week here and there for gigs!

    No you wouldn't.

    More and more are registering, as Revenue are getting better at auditing.

    If there is ANY paper trail at all (eg you sign a book for getting paid, there are posters with your name or band name, you give out business cards to people who ask when they see you at weddings), then it's far wiser to declare, and to make sure that you claim all relevant expenses.




    And 'cos I just found it for another thread - all the info you need is here: http://www.revenue.ie/en/business/running/registering-tax.html#section2


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    #6
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    Are the revenue really chasing down people who are making an extra 100 quid a week?


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    #7
    Saipanne
    Closed Accounts Posts: 4,882 ✭✭✭Saipanne


    I played in bands for half my life and never registered or even heard of anyone who did.


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    #8
    pedronomix
    Closed Accounts Posts: 997 ✭✭✭pedronomix


    Saipanne wrote: »
    I played in bands for half my life and never registered or even heard of anyone who did.

    Published Revenue defaulters lists are full of such punters who are charged 10 grand for about 3 grands worth of unpaid tax of aboiut 3K!! Real smart!!


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    #9
    Saipanne
    Closed Accounts Posts: 4,882 ✭✭✭Saipanne


    pedronomix wrote: »
    Published Revenue defaulters lists are full of such punters who are charged 10 grand for about 3 grands worth of unpaid tax of aboiut 3K!! Real smart!!

    It was smart. I didn't pay a penny!


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    #10
    pedronomix
    Closed Accounts Posts: 997 ✭✭✭pedronomix


    Saipanne wrote: »
    It was smart. I didn't pay a penny!

    lucky perhaps, smart... only you think so!


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    #11
    Saipanne
    Closed Accounts Posts: 4,882 ✭✭✭Saipanne


    pedronomix wrote: »
    lucky perhaps, smart... only you think so!

    Me and all my lucky band mates! Money smart!


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    #12
    jimmii
    Registered Users Posts: 14,810 ✭✭✭✭jimmii


    Saipanne wrote: »
    Me and all my lucky band mates! Money smart!

    Your money smart a lot of people would call it tax evasion.


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    #13
    Axwell
    Moderators, Computer Games Moderators Posts: 10,462 Mod ✭✭✭✭Axwell


    Saipanne wrote: »
    It was smart. I didn't pay a penny!

    Posting on a public forum about not paying your taxes, not so smart.

    Lets can the chat about tax evasion..that goes for everyone


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    #14
    Medic475
    Registered Users Posts: 290 ✭✭Medic475


    Thanks guys.
    Just trying to get my head around it now and get the ball rolling. Want to make sure I'm doing the right thing as I've heard bad news about bands lately!
    Thanks for your comments!!


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    #15
    doolox
    Closed Accounts Posts: 2,350 ✭✭✭doolox


    The revenue will go after people with large earnings and no visible means of support first. If you are earning about 70 a day and have no other income and have no other partner with an income but have a more than adequate lifestyle, mortgage and car repayments etc there will be questions to be answered. You will need to declare your income. If you already have a permanent job with a credibly large income that covers your lifestyle then the chances of revenue chasing you up reduce.

    However you will be able to make deductions for all expenses necessarily incurred in the performance of your duties. These need to be covered by receipts or mileage to and from your home and the gig. All gear and PA etc bought for the act should be allowed as well. Receipts should be kept for 6 yrs after declaration.

    Travel and subsistance allowances are available and should cut your net profit down considerably. This is the big advantage of self employed because workers are not allowed to claim travel to and from work ( They should ). Typical subsistance would be about €8 for lunch after 4 hours work. A gig can be made to fit this when rehearsal, sound tests etc are taken into accouint. All advertising, posters, flyers and postage should be included also all phone costs connected with the business.

    The big problem arises with people with savings and assets. If revenue subject you to an audit and a claim all your liquid assets could be wiped out. They might even be able to put a lein on the value of your house, force you to borrow money to pay them back all the penalties and interest due.

    People who have no assets or savings are in a more secure position when it comes to dealing with revenue as they cannot be touched if the money is already spent. These are the people you find have a more blasé attitude towards declaring and keeping tax compliant. If the amounts are big enough or involve VAT payments you could be looking at jail time if you have no money to pay back non compliant taxes. Also claiming welfare payments while working can lead to jail time.

    For example there is a huge difference between a student doing a few hours a week in a casual job and a middle aged permanent job holder doing a few hours extra work casually. One has little or no assets to seize in the event of non-compliance the other almost certainly will have assets to be seized.

    As the year progresses and you move into higher tax brackets it may not be worth your while chasing up extra gigs. It is important to keep track of higher rates of tax and USC which apply after certain wage levels are reached ( about 34k in total for a single person ) There is no point doing extra work if the taxman takes more than half of it away.


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