How to calculate VAT when employed and self-employed?

[Patrick101]

Hello

I started a permanent part-time employed position (20 hours per week) in December and am also self-employed to subsidize my income in the same industry (Reduced VAT rate 13.5%).

I'm wondering if I'll have to pay VAT on my total earnings or just on the self-employed part of my income?


Thanks

 

[mathepac]

If you're paid under PAYE for your part-time job then you can't charge VAT on top of your wages.

 

[Patrick101]

Thanks Mathepac

If my permanent employed contract equates to €30,000 (PAYE) and for example, I earn an additional €15000 from self-employment, will I have passed the €37,500 threshold for VAT and pay VAT on the €7500 that exceeds the €37500 VAT threshold - or would I only have to pay VAT if I earned in excess of €37,500 from self employment, irrespective of my permanent contract.

 

[jpd]

You have a business, presumably as a sole trader ie not a company, with income of € 15,000 - this is the amount to decide on VAT registration or not. The PAYE income does not come into this at all

The VAT threshold is the amount of income above which you must be VAT registered. You do not pay VAT on the amount above that - VAT is a tax you charge your customers, collect from them and pay to the Revenue. In return when you pay VAT on purchases, some of the VAT might be allowable and can be reclaimed from the Revenue

Please read up on VAT as you do not seem to understand how it works. It is NOT a tax on income