I'm sure this question has been asked before, but I haven't been able to find a definitive answer. I just want to make sure.
My main question is this. Say that someone has a PAYE part-time job and is also self-employed. Is he entitled to claim his usual PAYE tax credits?
I prefer to see a worked example so I'll make up some figures and calculate the tax. If someone could verify it and correct me on anything here, it'll answer all my questions.
PAYE income = 5000
Self-employed income minus expenses = 20000
Income tax at 20% from PAYE income = 1000
from self-employed income = 4000
Normally, 1650 is allowed as a PAYE tax credit, however, as only 1000 is due, only 1000 of these credits can be used. 1650 can then be claimed as the personal tax credit which is used to reduce some of the tax due on the self-employed income. So, the income tax due would be 5000 - 1000 - 1650 = 2350. Is this right?
I then presume that USC is paid on everything, but PRSI only on the self-employed income. Is this also right?
A completely separate issue, but didn't want to make another thread for it.
I've read that you claim a portion of bills, heating, mortgage, etc, for a home office, as long as you use that room only for work. Now, anything I've read assumes that you own the place. Does this also apply if you are renting (and even in shared accommodation)? For example, I'm renting a house with two others, but am renting two rooms, one of which is used as storage and a home office (only business-related things are stored there). Would I still be able to claim a portion of bills and rent in this case? To find the percentage of rent that I'd claim, I was thinking of doing the following:
Amount = [My rent X sq footage of room] / [total sq footage of house - sq footage of bedrooms not used by me]
Would this work?
Thanks.
My main question is this. Say that someone has a PAYE part-time job and is also self-employed. Is he entitled to claim his usual PAYE tax credits?
I prefer to see a worked example so I'll make up some figures and calculate the tax. If someone could verify it and correct me on anything here, it'll answer all my questions.
PAYE income = 5000
Self-employed income minus expenses = 20000
Income tax at 20% from PAYE income = 1000
from self-employed income = 4000
Normally, 1650 is allowed as a PAYE tax credit, however, as only 1000 is due, only 1000 of these credits can be used. 1650 can then be claimed as the personal tax credit which is used to reduce some of the tax due on the self-employed income. So, the income tax due would be 5000 - 1000 - 1650 = 2350. Is this right?
I then presume that USC is paid on everything, but PRSI only on the self-employed income. Is this also right?
A completely separate issue, but didn't want to make another thread for it.
I've read that you claim a portion of bills, heating, mortgage, etc, for a home office, as long as you use that room only for work. Now, anything I've read assumes that you own the place. Does this also apply if you are renting (and even in shared accommodation)? For example, I'm renting a house with two others, but am renting two rooms, one of which is used as storage and a home office (only business-related things are stored there). Would I still be able to claim a portion of bills and rent in this case? To find the percentage of rent that I'd claim, I was thinking of doing the following:
Amount = [My rent X sq footage of room] / [total sq footage of house - sq footage of bedrooms not used by me]
Would this work?
Thanks.