Basic questions from first time ROS user

J

justo

Registered User
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I have earned some money (less than 5k) in 2019 for consultancy work. In 2020, I will earn just above 5k. This is above and beyond my PAYE income.

I have logged into ROS to file my tax returns for 2019 and have some basic questions:

1. How do I calculate the % of tax I should pay?
2. Do I have an option of paying revenue by bank transfer of money, or by reducing tax credits?
3. Is there a benefit to either of the two options above?
4. The work is consultancy work - what is the best category to use to describe this on the ROS system?

Thanks in advance -
 
First, I would check can you use Form 12 instead of ROS Form 11.

Form 12 is easier.

Here are the criteria:


[broken link removed]

You do not need to register for self-assessment if:

  • you only have PAYE income
  • or
  • your taxable non-PAYE income does not exceed €5,000 and your gross non-PAYE income does not exceed €30,000. That income must be coded for PAYE purposes. ’Coded’ means the income is taken into account in calculating your tax credits and standard rate cut-off point for PAYE purposes. In this case, you must submit a Form 12 online through PAYE Services in myAccount.
 
The % tax rate is easy.

You pay extra tax on your extra non-PAYE income at your marginal tax rate.

The three tax rates in Ireland are 0% 20% 40%.
 
Protocol said:
The % tax rate is easy.

You pay extra tax on your extra non-PAYE income at your marginal tax rate.

The three tax rates in Ireland are 0% 20% 40%.
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Do I have to make USC and PRSI contributions too? The money earned is from an EU organisation rather than an Irish one, if that makes any difference...
 
PatrickSmithUS said:
In future you should consider invoicing through an umbrella company solution. You'll maximise your tax home pay that way thanks to expenses, etc.
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For 5K? There probably aren't many expenses, and a true Umbrella will mean the income is subject to Employers and Employees PRSI + USC, whereas a Director's Umbrella would be overkill and the fees too great for that level of income. Self assessment is the easiest way to go, although the OP should look into whether they need to register as self-employed. I would expect that the income will be subject to income tax, USC and Class S PRSI.
 
When you complete the ROS form it will calculate the tax and USC due - it will give you a balancing statement showing all income less allowances. You can also claim medical expenses and a host of other allowances which probably will not apply to you. You can pay by direct debit and select a date prior to the due date which is 30th October. - if return is done online the date is usually two weeks later.
 
Feemar5 said:
When you complete the ROS form it will calculate the tax and USC due - it will give you a balancing statement showing all income less allowances. You can also claim medical expenses and a host of other allowances which probably will not apply to you. You can pay by direct debit and select a date prior to the due date which is 30th October. - if return is done online the date is usually two weeks later.
Click to expand...
This is great - thanks!
 
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