PAYE with addtional income

[paybacktime]

Hi - I am a PAYE worker and earn approx €50K per annum. I also started a new business this year that has made me approx. €10K gross of which about €5K was in equipment out lay so profit was about €5K so my total earnings by year end will be approx €55K.

I have a few problems!

- The business isn't registered yet as it kind of happened by accident. Do I have to register it or just add the additional income to my PAYE earnings?

- How do I pay the tax on the additional income? Can I just declare it on ROS or would you recommend another way.

- The 5K of equipment was mostly purchased second hand so I have very few receipts available. Can I still claim this equipment against the tax owed?

- Is there anything else I might need to know?

Thank you

 

[Joe_90]

1. Get an accountant.

2. You need to register for tax. This will allow you to file your tax returns on ROS once registered.

3. You need to compute your profit for the year.
Sales less expenses, note that equipment is not deductable. Capital allowances are allowed at 12.5% if you do not have receipts have you evidence of how much you paid.

 

[M K Brazil]

I agree that you need to talk to an accountant. I am biased as I'm in the trade.

If you've generated that much sales, you must have other expenses such as phone, motor, etc. At your salary level, all profits will be taxed at the marginal rate so you really should ensure that you calculate your actual profits properly. Plus, your accountants fees will be tax deductable so it will only cost you half as much!

You need to send in a TR1 etc to register for taxes. If you've only started trading, the Revenue will allow you time to organise your affairs, so use it wisely and get assistance.