Potential earnings from the US, but living in Ireland query

[bumperbuster]

First off,

I'm a full-time Masters student working a couple of nights a week in a bar. In a previous life I was an English teacher (TEFL) and to help supplement my meagre earnings from the bar I have sought extra work as a teacher with varying degrees of success (had a contract for 3 weeks in a school here in Dublin).

My question concerns this:

I've been offered a job to teach online approx 20 hours a week. I have yet to decide whether or not I can achieve this while not affecting my studies but my other concern relates to my potential tax liability. The office that will be paying me are in the United States (so no Irish employer number obviously) and they have said that they will do an international bank transfer to my Irish account for salary payment.

If I accept the position, what should I do about my tax liability? I'm worried that I may have to declare my self 'self-employed' and I don't want to do this for obvious reasons. The wage will work out roughly about €300 per week.

I'd welcome any advice or answers!

Many thanks!

 

[Capefear]

tax q

Hi

I'm afraid you have limited options, but they are as follows.

1. You will have to declare the income and as it’s over 3174 and it’s not PAYE income you will have to register with the revenue with a TR1 and submit a form 11 and all that that involves. In your case it shouldn’t cost too much to get your yearend returns completed.



2. You can use an umbrella company where you can become an employee of the umbrella company and the umbrella company invoice the company in the US on your behalf. You get paid at the end of the month less all taxes and the umbrella company fees. You will be paying tax as a paye person and also the employer prsi tax which can range from 4.25% - 10.75% depending on your salary. So no need to become self employed with this option.



3. You can use an umbrella company where you can become a director of the umbrella company and the umbrella company invoice the company in the US on your behalf. You get paid at the end of the month less all taxes and the umbrella company fees. You will be paying tax as a employee but depending on the set up and what shares, more than 15% shareholding you lose you have you could lose your PAYE credit and at the end of the month get paid your fees less tax and the umbrella company’s fees.
4. If the US company plan on hiring more staff based in Ireland they could register for employer taxes here than your problem is sorted.

Option 2 & 3 would be none runners as they will cost you money and the job might not be worth it.

Option 4 I guess is wishful thinking

so option one is the way to go. Your one saving grace is your pub income assuming it’s been declared by your boss. As long as you have PAYE income and are earning between 38-352 on this paye income you are entitled to the Class A stamp and will be entitled to the full state benefits unlike self employed people with no PAYE income.


My apologies for the long winded answer but I just wanted to make you aware of your options and for 300 a week its probably best and easy to go route 1.


HTH

 

[Brendan Burgess]

The title of your post is too vague. Please it in line with the Posting Guidelines.

Please read the before posting again on Askaboutmoney.

Responses to posts with vague or meaningless titles are removed.

If the title is not edited within a reasonable time, the post will be deleted.

Brendan
Administrator

 

[bumperbuster]

Thanks Capefear! That's brilliant!!

Brendan, I hope I edited correctly?