PAYE worker and supplemental work

Hi,

I am a PAYE worker, and have recently got some additional consultancy work in a private capacity which I will self account for. I was looking for some basic information on how I go about this. I assume I would submiy my P60 to show my tax paid as PAYE worker and ultimately pay top rate tax and relevant PRSI (at self employed rate?) and USC on the additional income. I don't imagine the additional income will be more than 5000 or 6000.

Any information is appreciated.

Cheers

Actually an additional question I have - Do I need to charge VAT on this supply? I will not exceed the threshold (not even come within 20% of it). I know I don't need to register for VAT but do I still need to charge it and account for it?

Thanks.

If you are earning more than €32,800 (for a single person) assume that you will be paying tax at 52%. You will need to file a tax return (try a Form 11E if it exists for 2013) and put the information there. There is a good bit of information on the Revenue website about self-employed income if you want to look after your own tax affairs.

You won't need to register for vat unless the fees you generate exceed €37.5K and this is assuming that what you will be doing is liable to vat in the first instance. Exclude your employment income when looking at the vat registration threshold.

Thanks Dublin 66. I will look into Revenue website.

In terms of the VAT, the work is a VATable supply (if I exceed the threshold) I won't come close to the threshold and so won't register. And accordingly I won't have to charge VAT - is this correct?

Cheers

That is correct. A vat registration is only required where you exceed €37.5 in sales from activities that attract vat.

You can elect to charge vat on your services if you wish but generally you would only do that if your clients are vat registered and have full vat recovery and you are incurring expenses on which vat was charged yourself.

If you are getting services or bringing goods from outside Ireland vat registration may be necessary but in the absence of that the turnover criteria is the rule.