How to Pay tax on second job?

Hi,

I am planning on taking a second job as a delivery driver. It would be every second week for two days and would earn about €100 on average for these two days.(sometimes less, sometimes more)

How do I sort my tax on it? Am in full time employment also but want to make sure everything is legit,The company says its up to me to sort my tax out but wondering if its going to be worth taking the job if I end up having to pay most on tax.

Thanks

How much approx do you earn from your first job?... has your partner any portion of your tax credits or cut-off apportioned to them?...

I earn just under €400 per week. I am cohabiting but not married so havn't shared taxes with partner.

the simplest way would for you to be taken on as an employee for the delivery company. Whenever you do any work, that week a payslip would be issued, tax would be deducted at 20%. As you earn €400 pw in your main job, you will never be taxed at 41% unless your income in 2009 exceeds €36,400. It is probably better to have 20% tax deducted from your delivery money as you go on, rather than have to settle up with Revenue after end of tax year. If you are not taken on as an employee, but get paid for deliveries, keep records of all payments, declare it on a Form 12 after end of 2009 tax year, and Revenue will issue a P21 balancing statement showing whether you owe a bit of tax or they owe you a refund.

Hi

If your 2nd employer registers you as an employee with them you will be able to opt to move your tax credits from one employer to the other. This can be done online via ROS.

There should be no reason to file a form 12 and unless you know what you are doing, I would not recommend doing so. It should all be taken care of via PAYE system.

Kind Regards

dbran

DBRAN said:

... There should be no reason to file a form 12 and unless you know what you are doing, I would not recommend doing so. It should all be taken care of via PAYE system...

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Here are good reasons for filing a Form 12 :

"This tax Return should be completed by an individual whose source of income is from a PAYE employment or pension or by a non-proprietary company director who pays all his/her Income Tax under the PAYE system.

NOTICE: YOU ARE HEREBY REQUIRED, UNDER SECTION 879 TAXES CONSOLIDATION ACT 1997, BY THE INSPECTOR OF TAXES NAMED ABOVE TO PREPARE AND DELIVER, ON OR BEFORE 31 OCTOBER 2009, A TAX RETURN ON THIS PRESCRIBED FORM FOR THE YEAR 1 JANUARY 2008 TO 31 DECEMBER 2008." ... from Form 12 2008.

Due to the nature and timing of certain expenses incurred by PAYE workers (refuse charges, medical expenses, etc.) the day-to-day PAYE system as operated by their employer(s) will not necessarily reflect their true tax liability at the end of a tax year.

If a tax-payer needs professional help in completing Form 12, this expense is allowable for tax purposes.

mathepac said:

Here are good reasons for filing a Form 12 :

"This tax Return should be completed by an individual whose source of income is from a PAYE employment or pension or by a non-proprietary company director who pays all his/her Income Tax under the PAYE system.

NOTICE: YOU ARE HEREBY REQUIRED, UNDER SECTION 879 TAXES CONSOLIDATION ACT 1997, BY THE INSPECTOR OF TAXES NAMED ABOVE TO PREPARE AND DELIVER, ON OR BEFORE 31 OCTOBER 2009, A TAX RETURN ON THIS PRESCRIBED FORM FOR THE YEAR 1 JANUARY 2008 TO 31 DECEMBER 2008." ... from Form 12 2008.

Due to the nature and timing of certain expenses incurred by PAYE workers (refuse charges, medical expenses, etc.) the day-to-day PAYE system as operated by their employer(s) will not necessarily reflect their true tax liability at the end of a tax year.

If a tax-payer needs professional help in completing Form 12, this expense is allowable for tax purposes.

Click to expand...

You are not obliged to file any tax return if you are a PAYE employee.

You can file one if you wish to but you are not obliged to.

I take the point that the the day to day operation of the paye system can result in the tax deducted not being correct. However as a PAYE employee you are not subject to self assessment and you are not obliged to put it right. Most adjustments to a persons tax credits (other then pension payments) can be made via ROS much easier and quicker then via a form 12

All I am saying is if you do decide to file a Form12 be sure it really is a refund. If it works out to be not in your favour you will then be liable to pay any additional tax due.

Kind Regards

dbran