Employee + self employed

Hi all, new to the site.. A friend told me this is a great site for info so hopefully some of ye can help.

I'm a carpenter by trade and in the last couple of months I've been asked to do quite a few jobs outside of work for one or two companys, and other sub contractors..(who are looking for invoices) I plan on leaving my job within 2 years or so and basically want to start building up my own name/company in that period. I want to be able to advertise etc

If I register myself, and business name, will any earnings I declare be taxed as one, i.e my salary and extra work combined.? Should I register for vat, even though I doubt I will exceed the threshold at present..

Hope someone can help.. thanks

You will need to register a business name if you intend to trade under any name other than your own. As you are already aware, VAT registration is not neccessary unless you earn over the thresholds, but if you are dealing with businesses only, then it may be beneficial to register anyway so you can claim VAT back on any business expenses.

As for Income Tax, anything you earn extra will need to be declared to the Revenue (you, or an accountant, will need to file this form yourself!) and this will be added to your PAYE earnings on your P60 at the end of the year. You will then pay IT in the normal way, i.e. up to €34k @ 20%, anything over @ 41%. You will also need to pay a certain amount of PRSI yourself according to your extra earnings.

This is how I operated for approx. 2 years before I left my job and went full-time. It's a good way of testing the waters before committing to it.

Best of luck...!

Be wary - are you considered a sub-contractor for RCT?
Do you need to register?
Are you working in the Construction industry?

Buttermileja: Thats great, thats cleared that up.. I am going to register a business name, and operate under that name mainly in order to build up the name.. The main reason is to be able to advertise and not get myself in trouble.. thats the last thing I want at the very start.. I've a good understanding of book-keeping myself and a friend is an accountant so he has already agreed to throw his eye over it to make sure all is right..

thanks for your info..

Domo: Yes I work in the construction industry, but I will not be working for any builders or the like at the moment.. They will all be private jobs.. Will this pose a problem, as far as I'm aware that only comes into play when both parties are in the same industry..